I think the RNS from 31st Oct 2013 helps to clarify those points to some extent. Hopefully there will be an update on the conclusion soon.
Aminex PLC ("Aminex" or the "Company") announces that gas sales negotiations between its Tanzanian subsidiary Ndovu Resources Ltd. ("Ndovu") and the Tanzanian Petroleum Development Corporation ('TPDC') for its Kiliwani North Field in Tanzania are at an advanced stage and expected to be concluded prior to year end.
As part of the gas sales arrangements being negotiated, and at TPDC's request, TPDC will now at its own cost construct the tie-in line from the new gas processing plant currently being constructed on Songo-Songo Island to Kiliwani North. Ndovu has formally granted consent to TPDC to carry out this part of the project. As a consequence of this variation, production from Kiliwani North will now be metered and sold directly at wellhead. This will save Ndovu both the initial capital as well as ongoing operating expenditures in maintaining the tie-in line.
Further, TPDC has this week advised the Company that the major regional 36" pipeline project to Dar es Salaam, financed by the Chinese Export Import Bank, is approximately on schedule, reconfirming that first commercial gas is expected onstream in early 2015, as previously advised by the Company.
Tanzania is not the best of places to operate as a small gas supplier, and that clearly has impact on potential upside. A great place to start for reading up on upside potential: Orca Exploration web site and seekingalpha´s research piece on that company. Orca is currently sending approx 100 mmcd/d of gas to Dar, and is in negotiations for a GSA for the new pipeline.
Problem seems to be that the suppliers are at risk of not being paid for the gas they are sending off. Until that is resolved, valuation of gas assets directed to the domestic market will suffer.
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