When TPDC was formed in 1969, the primary role was to oversee the operations of AGIP, the only concession holder then working in the country. Following the discovery of the Songo Songo Gas field, and subsequent relinquishment by AGIP, TPDC undertook the confirmation of the gas field, and eventual appraisal. It is now geared to the development of the field as well as exploration in other basins in the country. In the interim, TPDC undertook the function of the sole importer of both white and crude petroleum products and marketing.  With the onset of economic liberalization, the oil marketing operations ceased in the year 2000.

The mandate of the corporation has remained essentially the same, to spearhead, facilitate and undertake oil exploration and development in Tanzania. In the year 2000, TPDC launched exploration activities in the deep-sea area.

The Background page highlights on the TPDC’s mandate as depicted in the Government Establishment Order of 1969. The page on Exploration Activities summarizes the petroleum exploration history of Tanzania, providing an outline of database currently available to explorationists.  The page offers a summary of regional geology, stratigraphy, and petroleum prospects of the country and information of ongoing exploration activities. Currently the website includes Information on the Songo Songo Gas-to-Electricity project as well as the Mnazi Bay project.

Mission statement

To contribute to the growth of the National Economy, TPDC shall develop to be Tanzania’s best operating company in the oil and gas industry by profitably and efficiently satisfying market needs with the right products and services at the same time developing quality and safety standards to protect people, property and the environment.

Exploration activities

Tanzania has been intermittently explored over the last 50 years. Most of the multinational petroleum companies were represented in the area, at one time or another. Significant gas discoveries were made at Songo Songo and Mnazi Bay. So far a total of 35 exploration and development wells have been drilled.
 
The cumulative seismic coverage in public domain is approximately 52,000 km of which 28,000 km were acquired offshore and 24,000 km onshore. The onshore seismic coverage includes coastal as well as interior rift basins. An additional 11,000 km of Deep-sea modern non-exclusive geophysical data were acquired in the year 1999/2000. Although no oil has been produced until now, available data and geological information reveal the existence of an active petroleum system.

SongoSongo gas-to-electricity project

The goal of the Songo Songo Gas to Electricity project is to develop natural gas from the Songo Songo gas field in Kilwa District to provide Tanzanians with a reliable source of low cost electricity. The project will form the basis of the development of gas industry and infrastructure in Tanzania.

Gas-to-electricity project

In October 1995, Ocelot Tanzania Inc. and Trans Canada Pipeline Limited (TCPL Tanzania Inc.), in partnership with the Government of Tanzania (GoT), Tanzania Electric Supply Company Limited (TANESCO) and Tanzania Petroleum Development Corporation (TPDC), set out to create a company called Songas to implement the Songo Songo Gas to Electricity Project. Songas has developed the Songo Songo gas field in Kilwa District, Lindi Region, by constructing the gas processing facilities on Songo Songo Island and the pipeline network to transport natural gas to Dar es Salaam where it will be used as the principal fuel supply for five gas turbine electricity generators. The pipeline will then continue to supply the Wazo Hill Cement Plant. The project will produce reliable electricity for the national grid and also bring gas to other industrial users in Dar es Salaam.

Gas field development

The Songo Songo Gas to Electricity Project will serve two onshore and three offshore natural gas wells at Songo Songo Island. Natural gas from the wells is then piped to a gas plant on Songo Songo Island.

Songo Songo Gas Plant

Two 35 million cubic feet per day processing units (dehydration and refrigeration) on Songo Songo Island has been built to process the natural gas from the wells. Any hydrocarbon liquids removed will be shipped to Dar es Salaam or consumed on-site as fuel. The project has brought about an improvement in the Island’s infrastructure by modernising the airstrip and wharf and providing portable water and power supply.

Gas transportation

After processing, the gas is be transported through a 25km 12-inch pipeline from Songosongo to Somanga Funga, and from Somanga Funga through a 207km 16-inch pipeline to Ubungo Dar es Salaam where natural gas has replaced liquid fuel as feedstock in the generation of up to 115MW of electricity for the national grid. A 16km 8-in pipe line has been extended northwards to provide natural gas to the Wazo Hill cement plant where has replaced fuel oil as feedstock in the manufacture of cement.

Project developers

The Tanzania Ministry of Energy and Minerals is responsible for coordinating the roles of TPDC and TANESCO, as well as ensuring that the Project meets the needs of all Tanzanians. The Ministry has been the principal government negotiator on commercial arrangements and has taken the lead on financing issues. TANESCO, the national utility, owns and operates Tanzania’s power generating and distribution system. TPDC is the national oil company responsible for exploration, promotion and development of oil and gas resources in the country.

The main project sponsor was AES Sirroco of the USA, a large electricity company operating worldwide. The other sponsor is Pan African Energy, formerly Ocelot International, a gas development company, with operations in several African countries. Project investors are AES, Pan African Energy, TANESCO, TPDC, CDC, TDFL, EIB and World Bank, the latter two through the Government of Tanzania. Project costs are estimated at US$ 350 million. The project will be implemented by SONGAS, a local joint venture company formed by Globeleq, TANESO, TPDC and CDC. Ocelot, now Pan African Energy will operate the gas field on behalf of Globeleq.

Project benefits to Tanzanians

- Meet the growing demand for electricity in Tanzania using a domestic natural resources
- Reduce the country’s dependence on imported oil for electric power generation
- Provide an alternate, lower-cost and more reliable power source
- create skilled and unskilled employment opportunities during construction and operations
- Permit the use of natural gas in industry as an energy source or a chemical feedstock (e.g. fertilizer production)
- Develop the infrastructure to boost exploration for oil and gas
- Provide power, gas and associated economic benefits to Songo Songo island and communities along the pipeline route
- Promote private investment in the energy sector and contribute to government revenue through fees, taxes and royalties
- Enable the Wazo Hill cement manufacturer to use natural gas as fuel instead of imported fuel oil
- Enable Tanesco to diversify their generation options from the heavy dependence on hydroelectricity.

TABJ

*courtesy of the TPDC, www.tpdc-tz.com

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