Gas to power east African development

The Songo Songo gas field off the Tanzanian coast is the source of a USD 310 million project in which the lead sponsors are the AES Corporation from Arlington, Virginia, and the PanAfrican Energy Corporation based in the Channel Islands. The project has been developed by the Ministry of Energy and Minerals of Tanzania, Tanesco and the Tanzanian Petroleum Development Corporation, all partners in Songas. The World Bank and the European Investment Bank are the lenders for the project. Songo Songo Island will be the site for the plant processing the gas, which will then be transported by pipeline to Dar es Salaam. The
gas will power generating turbines, creating revenue for Tanesco, the state-owned utility. Export potential is strong and the pipeline could be extended to Mombasa to supply the Kenyan market. The project is being finalised and the first gas should flow to Dar es Salaam at the end of 2003. A joint venture between McConnel Dowell (Aus.) and Grinaker LTA (SA) has been pre-qualified for the gas processing and marine pipeline engineering, procurement and construction contract.

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