The Tanzania Petroleum Development Corporation (TPDC) plans to invest at least TZS 120 billion ($46.8 million) in a 34-kilometre natural gas pipeline that will link the onshore Ntorya gas field in southern Tanzania to the Madimba Gas Processing Plant in Mtwara.
The project is fully funded by the Tanzanian government and seeks to augment domestic energy supply while simultaneously supporting the nation’s transition to more environmentally friendly energy sources.
The Ntorya gas field lies in a strategically significant region, in a close proximity to a substantial Madimba gas processing facilities and the upcoming liquefied natural gas (LNG) projects that will involve extracting gas from offshore Lindi and Mtwara to Likong’o area.
UK-listed Aminex holds a 25 percent non-operating stake in the Ntorya development
Chinese firms China Petroleum Pipeline and China Petroleum Technology & Development Corporation have been awarded the contract to provide engineering, procurement, and construction (EPC) services for the pipeline. Construction is expected to take eight months.
“The project is ready to begin. We have secured the contractors and completed compensation and technical assessments,” said TPDC geologist Erick Kivera in an interview with The Respondent.
TPDC has paid TZS 490.2 million in compensation to 255 individuals who vacated their land to make way for the pipeline route. Environmental Impact Assessments and feasibility studies have also been completed.
In a upstream part of the project, the operator ARA Petroleum is preparing to drill a new exploration well at Ntorya, construction of development facilities and undertake workover of the two existing wells.
The output from these wells will be directed to the Madimba plant via a new pipeline.
“The upstream partners are leading drilling works, while TPDC is focused on pipeline construction to ensure that gas reaches Madimba,” Mr. Kivera explained
Well tests will be carried out on the Ntorya -2 well to determine whether the gas can be processed directly at Madimba or if a small pre-treatment facility will be required. “Natural gas often contains water and other gases, and further processing may be needed,” he added
The entire project is estimated to cost around USD 180 million. Once complete, the field is expected to produce up to 140 million standard cubic feet of gas per day (mmscfd). The initial three wells are expected to contribute about 60 mmscfd, while more development wells are planned in the future.
The investment is a key part of Tanzania’s broader plan to strengthen domestic energy infrastructure and attract private sector participation in the natural gas sector.