PanAfrican Energy Tanzania Ltd. is Tanzania’s first natural gas producer – supplying gas for power generation at the Ubungo Power Plant in Dar es Salaam. PanAfrican Energy also supplies natural gas to 38 industrial and commercial customers in the Dar es Salaam area reducing their operating costs and contributing to Tanzania’s industrial growth. In addition the company supplies Compressed Natural Gas (CNG) for use in vehicles.
PanAfrican Energy (and its predecessor companies) have been active in planning the development of Tanzania’s Songo Songo gas field since 1991. Much of the first decade was used to evaluate existing non-producing wells, find partners, secure financing and negotiate a Production Sharing Agreement (PSA) with the Government of Tanzania.
By 2001 all agreements were in place and work began to bring Tanzania’s first natural gas field into production. PanAfrican Energy and other partners in the development of Songo Songo began the job of restoring wells to be production ready, designing and constructing processing facilities and constructing a marine and land pipeline to ship natural gas to Dar es Salaam.
The first gas used to generate power at the Ubungo Power Plant was received in Dar es Salaam in July 2004 and PanAfrican Energy has continued to produce and supply gas since that date. PanAfrican Energy has continued to invest in the development of Songo Songo and has drilled two new wells to maintain production. PanAfrican has also conducted seismic exploration work to identify potential new well locations and to increase reserves that will extend the life of the Songo Songo gas field.
Giving back, particularly to the people in areas where the company has activities, is a fundamental PanAfrican Energy principle. The company financially supports a wide range of youth education and teacher training program on Songo Songo Island and in the Kilwa District. In August 2013 PanAfrican’s corporate social programs were recognized with a Presidential Award from His Excellency Jakaya Kikwete for the best oil and gas company corporate social responsibility programs in Tanzania.
PanAfrican Energy is a wholly owned subsidiary of Orca Exploration Group Inc (an investor owned public company). PanAfrican directly employs approximately 80 Tanzanians and makes extensive use of local Tanzania suppliers of services.
The Songo Songo Licence Area
The Songo Songo natural gas licence area covers approximately 170 square kilometers and is located on the western part of Songo Songo Island, which is 15 kilometres off Tanzania’s coastline and about 200 kilometres south of Dar es Salaam. It is Tanzania’s first and largest natural gas development and supplies gas to the Ubungo power plants at Dar es Salaam and 38 industrial customers.
Gas from the Songo Songo Island plant is transported by a 25 km 12-inch marine pipeline and a 207 km 16-inch land pipeline that extends north along the coast to Dar es Salaam.