Songas generates electricity using gas from the Songo Songo Island gas fields , off the coast of southern Tanzania. The business consists of two different operating streams, Gas Processing and Transportation and Power Generation.
Gas from the Songo Songo gas field is processed on the island at the processing facility to remove water and other hydrocarbon condensates. It is then transported through a 225 kilometre pipeline to Dar es Salaam where it is used in Songas’ Ubungo power plant, the largest gas-fired power station in East Africa.
The facility uses six aero-derivative turbines that generate 180 megawatts (MW) of electricity or approximately 30% of Tanzania’s electricity needs. This electricity is supplied to the national electricity grid and distributed to end users by TANESCO. Songas also supplies gas for generation to approximately 30 industrial consumers.
Songas provides a clean, reliable alternative fuel source in a country that has been heavily dependent on the region’s water supplies for hydroelectric power and the importation of expensive heavy fuel oil for other oil-fired turbines.
The company has one of the cheapest and competitive all-in generation costs in East Africa. It sells its electricity to TANESCO at approximately 5.5 US cents per kWh (TSH65).
By utilizing the country’s own natural gas resources, the Songas facility has substantially reduced operating costs for TANESCO and other industries in Tanzania. Over USD1.8 billion has been saved since commercial operations commenced in 2004.