AGREEMENTS / Tornado Resources Secures African Deal
TORNADO RESOURCES LTD. SECURES ENERGY PROJECT IN EAST AFRICA
CALGARY, Jan. 23 /CNW/ - Tornado Resources Ltd. announces the signing of
a Memorandum of Understanding with the Government of the United Republic of
Tanzania, effective January 1, 1998, for the development of a natural
gas-to-power project in southern Tanzania.
The Mnazi Bay Gas-to-Power project involves the exploitation of the 500
Bcf Mnazi Bay gas field for power generation at the town of Mtwara, situated
in the southeast corner of Tanzania. The project is comprised of the
following stages; (i) Re-entry and production testing of the Mnazi Bay-1 gas
well, which was drilled and suspended in 1982; (ii) construction of a
25-kilometre gas pipeline linking the Mnazi Bay gas field to the generation
site at Mtwara; (iii) Commissioning of 15 MW of gas turbine capacity at the
Mtwara generation site; and (iv) Construction and upgrading of transmission
facilities connecting the urban centers of Mtwara, Lindi and Masasi (total
length of 205 kilometers). Capital cost for the project development is
estimated at US$32.5 million.
A Production Sharing Agreement between Tornado Resources Ltd. and the
Tanzania Petroleum Development Corporation (TPDC) is anticipated to be signed
at month's end, covering the development of the Mnazi Bay gas field. The well
re-entry program is scheduled to begin in mid-February 1998. Tornado Resources
Ltd. will operate the gas production facilities, and will be owner/operator of
the natural gas pipeline, gas turbines, and transmission facilities.
The integrated energy project includes an initial transmission franchise
area covering the Mtwara and Lindi Administrative Districts, with an optional
franchise area extending across the south of Tanzania to the western border
with Zambia. The south of Tanzania is currently unconnected from the Tanzania
integrated power grid, with power supplied from isolated diesel generators
located in the various urban centers.
Load growth in the franchise area will be focused on agricultural
processing mining activities, and proposed electricity exports to northern
Mozambique. The deep-water harbor at Mtwara provides ready import/export
access to the major Asian markets. Projections call for expansion of the
Mtwara gas-fired generation facility to 50 MW of capacity by 2003.
Further information regarding the operations and outlook for Tornado
Resources Ltd. will be provided at the Company's Annual General Meeting, which
will be held on Wednesday, January 28, 1998 at 10:00 AM at the 400 Club, 710
- 4th Avenue S.W., Calgary, Alberta. |
