Orca markets Additional Gas to power industrial and commercial markets in Tanzania. The core market is power generation.

    Orca has also developed a sizeable industrial market that includes over 40 customers in the Dar es Salaam area. The Company is currently examining opportunities to expand its compressed natural gas (CNG) operation to be used more widely in transportation and by industrial and commercial customers who cannot be economically connected to the Company’s low-pressure gas distribution system.

    Power Generation

    Power generation capacity in Tanzania has increased steadily over recent years due to a rebalancing of the power generation mix. As at 31 December 2018, Tanzania had approximately 1,520 MWs of installed power generation capacity, with approximately 54% of that total being fired by natural gas. Hydro generation accounts for less than 40% of the total and is largely seasonal. Currently, the only major water storage is at the Mtera reservoir which supplies the 80 MW Mtera and 204 MW Kidatu hydro plants. The remaining 278 MWs of hydro generation is “run of river” which is only operational on average for 4-5 months in the year.

    Tanzania is embarking on a significant expansion of its hydro power generation capacity, constructing a 2,115 MW facility at Stiegler’s Gorge. The project commenced in 2019.  With typical hydro dam projects taking between 4-7 years to bring into operation, it is likely that Tanzania will continue to rely on gas fired generation to meet burgeoning demand for some time to come. 

    Industrial

    Natural gas is a reliable, cheaper and more environmentally friendly source of energy than heavy fuel oil or coal. It is also considerably more abundant as a national natural resource. Its use therefore overcomes considerable import and transportation costs when purchasing alternatives internationally.

    Orca’s low-pressure natural gas pipeline system connects industrial users in the Dar es Salaam area. Built by Orca, the system is currently in excess of 50 kms in length, connecting over 40 industrial customers across 9 industrial sectors. Industries using Additional Gas include textile mills, breweries, glass and steel manufacturers, as well as a prison and tobacco company.

    Demand for cement in Tanzania is set to continue to increase over the next few years as the country embarks on significant infrastructure projects, with extensive construction of new offices and accommodation in Dar es Salaam and Dodoma.

    The Wazo Hill cement plant at Dar es Salaam is supplied with Protected and Additional Gas by Orca and continues to increase production. Similarly, the Dangote Cement Factory recently established in Tanzania and supplied with gas through the National Natural Gas Infrastructure is set to increase production in line with demand, while other cement producers seek ways to access gas supplies to displace expensive alternative fuels.

    PLANT

    MW

    NATURAL GAS/THERMAL

    Songas

    190

    TANESCO

    Ubungo 1

    102

    Ubungo 2

    129

    Somanga

    8

    Tegeta 45

    45

    Mtwara

    22

    Kinyerezi 1

    150

    Kinyerezi 2

    180

    Total gas fired generation

    826

    LIQUID FUEL

    Nyakato Mwanza.

    60

    Zuzu

    8

    Ngara

    2

    Biharamulo

    2

    Total liquid fuel fired generation

    72

    HYDRO POWER

    Kidatu

    204

    Mtera

    80

    Hale

    21

    New Pangani Falls

    68

    Kihansi

    180

    Nyumba ya Mungu

    8

    Uwemba

    1

    Total hydro generation

    562

     

     

    PLANNED

    TANESCO

    Kinyerezi 1 Extension

    185

    Mtwara new plant

    300

    Somanga Funga new plant

    330

    Stiegler’s Gorge

    2,115

    Total planned generation

    2,930

     

     

    Totals

    Total installed (1 June 2019)

    1,520

    Total available (1 June 2019)

    1,448

    Total planned future generation

    4,450

    Total planned future gas fired generation

    1,641