Songas
is an internationally-owned company that generates electricity
using gas that was discovered at Songo Songo island off the coast
of southern Tanzania. The business consists of two different operating
streams, Gas Processing and Transportation and Power Generation.
Gas
coming from the the Songo Songo Gas Field is processed to remove
water and other hydrocarbon condensates.
It
is them transported through a 225 kilometre pipeline to Dar es
Salaam where it is used in Songas’ Ubungo power plant, the largest
gas fired powerstation in East Africa, where it drives six aero-derivative
turbines that generate 190 megawatts (MW) of electricity.
This
electricity is fed into the national electricity grid from where
it is distributed to end users by TANESCO.
This
gas provides a clean, reliable alternative source of energy in
a country that has been heavily dependent on hydroelectric power
and expensive oil fired turbines.
Songas
sells it's electricity to TANESCO at an overall cost, including
gas processing, transportation and generation, of approximately
5.5 US cents per kWH (TSH65). This is one of the cheapest all-in
generation costs in East Africa and is extrememly competitive
when compared to International electricity prices.
Gas
is also delivered to other large energy users in Dar es Salaam
who also get to benefit from this cheap and reliable fuel.
Key
facts
Cheap, reliable and clean energy generation.
Producing 190MW of power or approximately 45% of Tanzania’s
electricity needs.
Project
investment of USD 320million
Long term partnership with Government of Tanzania, TANESCO,
TPDC, FMO and TDFL