The Ntorya gas discovery28 Nov 2024 11:03
Why is this discovery and development so important?
The Ntorya gas discovery is a significant onshore gas field located in Tanzania's Mtwara region.
In September 2024, Tanzania Petroleum Development Corp. (TPDC) and ARA Petroleum Tanzania (APT) were granted a 25-year development license for the Ntorya gas discovery by Tanzania's Ministry of Energy.
Key details about the Ntorya gas field:
Reserves: The field contains 1.8 trillion cubic feet (tcf) of gas proven by two wells. APT estimates a matured unaudited Contingent Resource of 3.45 tcf of Gas Initially In Place (GIIP), with a mean unrisked GIIP potential of 16.4 tcf.
Production plans:
Initial production: 40-60 million standard cubic feet per day (MMscfd) in the first year
Planned increase: Up to 140 MMscfd within a few years
This could increase Tanzania's gas production by 20-80%
Development timeline:
Discovery year: 2012
First gas anticipated: 2025
Production peak expected: 2030
Infrastructure:
A 35-km natural gas pipeline from Ntorya to TPDC's 210-MMcfd Madimba gas processing plant is expected to be completed in 2025
APT is acquiring land for upstream processing infrastructure and the Chikumbi-1 appraisal well location.
Economic impact: The development is expected to boost economic development, alleviate energy poverty, and support Tanzania's energy transition.
Future potential: APT believes there is potential for far greater volumes of gas production, which could be "game-changing for Tanzania's energy security, for Mtwara's industrial development and for Tanzanians' prosperity".
The Ntorya gas development is expected to have significant economic impacts on Tanzania:
Increased energy production: The project will boost Tanzania's gas production by 20-80%, with initial production of 40-60 million standard cubic feet per day (MMscfd) in the first year, potentially increasing to 140 MMscfd within a few years.
Job creation: The development will create employment opportunities for Tanzanians, contributing to increased per capita income and national gross income.
Industrial development: The gas from Ntorya will power vehicles, households, and industries, spurring economic growth and industrial expansion in the Mtwara region and beyond.
Energy security: The project will strengthen Tanzania's energy security and potentially transform the country into a regional energy hub.
Electricity generation: The government plans to construct a gas power plant with a capacity of over 300 megawatts in the Mtwara Region, improving electricity availability.
Economic growth: The intensive investment in gas exploitation is expected to promote sustainable economic growth and improve Tanzania's energy mix.
Potential for further development: The wider Ruvuma joint venture area could hold up to 16.4 trillion cubic feet of gas, offering potential for even greater economic benefits in the future.
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