Mtwara Region Gas-to-Power Project

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In August 2003 Canadian firm Artumas Group Inc entered an agreement with the government of Tanzania for the development of the Mnazi Bay Gas-to-Electricity Projoect. The project would include development of a natural gas field, and the construction, operation and maintenance of a 27 km pipeline and six generating units each with a 2 MW capacity (12 MW in total)gas generation plant. Electricity would be sold to Tanesco (the state-owned utility), to supply electricity to the southern regions of Lindi and Mtwara under a 25 year Transmission and Distribution Franchise Agreement. The project reached financial closure during 2005. The project was expected to cost at least US$ 32 million. Construction began in November 2005 and first electricity was generated at the Mtwara power plant on December 23, 2006 and full commissioning of the integrated gas-to-power project, or the Mtwara Energy Project – was achieved on March 5, 2007. Continuous electrical power was being provided to the towns of Mtwara and Lindi since then. In February 2010, the rehabilitation and expansion works carried out under the interim contract permitted the inland town of Masasi to be connected to AG&P Power’s power station in Mtwara. This had a positive impact on demand for power generated by AG&P Power, a Artumas subsidiary, and presently three generating units each with a two MW capacity (6 MW in total) have been purchased and delivered to Mtwara where they are ready for installation and integration into AG&P Power’s power station. In March 2012, 100% of equity of this project was sold to Tanzania Electric Supply Company (TANESCO) for US$13.5 million. This sale was effective as of February 7, 2012 and closed on March 8 2012. http://www.wentworthresources.com/pdf/reports/2006_Annual_Report.pdf and annual reports for other years. Reportedly, capacity expanded to 18MW. No info on when this happened. ALSO: project sold to TANESCO (public) in March 2012, therefore contract concluded. This requires updating. Note that as of 2013 there is talk of re-privatizing. Needs further checking. Source: http://www.reuters.com/article/2012/02/08/idUS64359+08-Feb-2012+HUG20120208 Response: Updates have been done for 2012.