Downstream Network

After the gas has been processed on Songo Songo Island and transported to Dar es Salaam, the majority of Additional Gas marketed by Orca is supplied directly through 16” and 8” high pressure pipelines to the Songas and Tanesco power plants at Ubungo and Tegeta, and to a large cement factory at Wazo Hill.

The balance of the Additional Gas enters a 50 km low-pressure ring main distribution system in Dar es Salaam where it is used to supply more than 40 industrial customers across nine sectors, including steel, glass, textiles beverages and tobacco. The gas is also used by Orca’s customers for the generation of captive power. This low-pressure network is owned and operated by Orca.

Market Expansion

Demand for natural gas in Tanzania is set to grow significantly.  Annual growth in energy demand is currently averaging between 7 and 9 percent, while the Government of Tanzania has stated its intentions to increase power generation to 6 times its current installed capacity (approximately 1,520 MWs) by 2025.  While hydro, wind and solar energy will be part of Tanzania’s future energy mix, the country’s vast natural gas resources suggest thermal power generation will contribute significantly.  Several new gas fired power generation facilities are already in various stages of implementation.

Similarly, industrial demand is expected to continue growing.  Limited in recent years by capacity constraints in the gas distribution systems, the establishment of the National Natural Gas Infrastructure, able to transport up to 784 MMscfd to Dar es Salaam and other areas, has transformed the landscape.  New markets and new industrial zones are being established in the country, while the rapid development of the nation’s infrastructure is also expected to accelerate demand.  Similarly, situated on Africa’s east coast, with several deep-water ports and with well-established road networks into the continental interior, Tanzania and Dar es Salaam in particular is well placed for large scale strategic industries looking to serve not only domestic markets, but also international markets in Africa, India and beyond.