Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
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Its great that the Tanz is investing in gas infrastructure. None of that investment has any effect on the SP. What info am I missing that has got you guys so confident in sale or cash generation?
They Government have spent loads on infrastructure, gas plants, huge pipelines, currently the capacity they have in infrastructure far exceeds demand with more gas processing plants coming on line. The 542 kilometres from Mtwara to the capital Dar es Salaam is only filled to around 15% capacity today.
The forward domestic demand based on the Tanzanian 5 year plan looks healthy, but the real money is in the export gas pipelines. Kenya and Uganda are expected to demand around 1 BCF per day according to the TPDC V the 0.1 BCF per day demand now.
I feel as though I am missing some information here. Like gas sales from Ruvuma are imminent because all the infrastructure has been whilst I wasn't paying attention.
Should've sold - I don't believe there is the local demand, even if there is a pipeline. They need the Kenya link / LNG etc.
Oh dear, wheels falling off for anyone?
Aimster - you mention market cap will be 50 million at the next placing? How are we going to 5 bag between now and the next placing (let's say 1 year from now)?
Just one point for CPerkin with regards to Ruvuma. If I knew that no green energy projects were coming our way this year, to hopefully steadily increase the SP, I would sell up and come back in September where the SP would most likely still hovering around 1p +/- 0.5p. If there is no RNS relating to a new project in the next couple of weeks, then I will assume that is the case.
Ok I know I've been out of the loop here for quite awhile with sticking Solo in the bottom drawer and forgetting about it. But has Ruvuma got an immediate route to market for gas sales?
Should’ve sold.... the development license award will include a plan to market. Whether to export to Kenya, make cement, convert to LNG or supply gas to power the oil pipeline cooling stations or maybe all 4 and more.
Do you mean the EPS pipeline, 35km? If so that is part of the last development plan published and is included in the EPS for domestic consumption via the Madimba gas plant that then ties into the 542 kilometres from Mtwara to the capital Dar es Salaam. Dangote and other plants are also an option for domestic gas, I remember reading the Zubairs were involved in a large fertilizer plant in Tanzania for example. Again the export pipelines to Kenya and Uganda are a seperate affair and where the big volumes are .
So, with all those things in place & no pipeline built. Who would the gas be sold to?
Unless Dangote builds one directly to one of his processing plants...?
Ruvuma could be sold after a number of key events. 1) After 3D seismic results 2) After CH-1 results and new CPR and 3) when the 25 yr development license is awarded. When the development licence is awarded £100M plus is the sale price, but obviously dilution will occur on the way. But as I stated before the MC will be above £50m when the 1st placing occurs. This is just for Ruvuma. We’ll have to wait and see what the financial plan for the green energy projects.
I know a few got bored of me harping on about assets being "land locked", but this was the issue I was raising & its the key to asset maturity.
Once this pipeline gets built, Ruvuma gas can be sold to customers.
I don't know how long a 370mile pipeline takes to be built in a country like Tanz. 3 years? 5?
However long it takes; its my opinion that's how long Scir will have to wait for a Ruvuma sale.
Oh ok, yes there were two, the main 36 inch and yes the pipeline that ties KN-1 into the Network, both built & the 3rd is the 35km pipeline required to tie in Ruvuma to the Madimba gas plant, planned after CH1 nd 25 year lic.
The export gas lines to Uganda and Kenya are new and will have a total capacity of just under 1BCF per day according to the TPDC
Nope. There were two. The pipeline KN1 tied into and the pipeline needed for Ruvuma.
I think you might be confusing the 36 inch pipeline built by the Chinese that runs 542 kilometres from Mtwara (Where Ruvuma is) to Dar es Salaam and was completed in 2015 SVS?
The gas export pipeline from Tanzania to Kenya was only agreed the other week and is expected to be up and running in around 3 years. incidentally it is around the same amount of time the Full field development and the further 6 to 8 wells is estimated to take over Ruvuma.
I remember when I first started investing in Solo Oil. It was this pipeline carrot dangling which convinced me it was a no brainer investment.
10 years on they are still considering the idea *facepalm*
Even if an agreement is made to invest & construct a 600km pipeline, how long would it take to build, test, commission & ready to supply?
Ultimately this pipeline is what will actually have value realisation to Ruvuma, monetisation & a possible sale.
Thanks for forwarding that link on CP, makes for a good read :)
Fell
Kenya -Tanzania gas pipeline...will use onshore reserves...who could have the reserves they need onshore I wonder? Our time will come...https://www.upstreamonline.com/production/kenya-and-tanzania-revive-1-1bn-gas-export-pipeline-plan/2-1-1009232
Thx to Alcapone1 on AEX bb