M&P Exploration Production says HEP affecting gas sales to Tanesco

“Because of availability of water at their dams, Tanesco is generating more power using hydro tha natural gas hence our volumes have been affected,” M&P Exploration Production Tanzania Limited Deputy Managing Director, Elias Kilembe told visiting University of Dar es Salaam geology students at Mnazi Bay last weekend.

Kilembe said under normal circumstances, his company supplies Tanesco with a maximum of 80 million standard cubic feet of natural gas to Tanzania Petroleum Development Corporation (TPDC)’s Madimba gas processing plant which is used by Tanesco for power generation.

“Currently we are supplying them, on average 55 million standard cubic feet per day which is lower because of reduced demand,” he said pointing out that as hydro dam get depleted of water, the state power needs less gas.

“The gas we sell to TPDC is raw gas because they have a processing facility before they deliver it to Kinyerezi for use by power generators,” he noted.

The M&P Exploration Production (T) Limited which is a subsidiary of Paris based Maurel & Prom, has four gas wells at Mnazi Bay four of which supply TPDC while one supplies Tanesco Mtwara. “The gas that we supply to Tanesco Mtwara is processed because it goes directly to generation plants,” he noted.

The company supplies on average two million standard cubic feet of natural gas to Tanesco Mtwara for generation of 12 megawatts of power used by residents of Lindi and Mtwara regions. “The demand here is still very low, we just hope that Dangote Cement will soon start using natural gas to power their plant to boost our gas sales,” Kilembe noted.

Operations Lead at M&P Exploration Production, Haruna Mchessu said the MB 1 well which supplies Tanesco Mtwara has capacity of over20 million standard cubic feet per day but only two million is used.

“We still have huge capacity to supply Lindi, Mtwara and other regions if demand arises from this single well,” he said. Mchessu further noted that the sweet gas from Mnazi Bay can be used to power industries and homes.

M&P Exploration Production Tanzania Limited is currently undertaking a project to link all its four wells so that gas from any of them can be supplied to TPDC or Tanesco Mtwara and other clients who may need the commodity in future.

“Currently we can only supply Tanesco Mtwara with gas from MB 1 well, we want to join all the four wells so that in future we can supply clients from any well,” pointed out the Mchessu.

In its first quarter results announced last April, Maurel & Prom said it made sales of 58 million euros which was down from 70 million euros generated during the same quarter of 2015 due to falling oil prices.

“The group generates most of its business in Africa through the exploitation of onshore assets already developed (Gabon and Tanzania) and a significant stake (21.37%) in Seplat, a leader of indigenous operators in Nigeria,” the company said in a statement.

Maurel & Prom is an independent oil company specialized in the extraction and production of hydrocarbons listed on Euronext Paris. Wentworth Resources and TPDC have minority shares at Mnazi Bay gas facility.