91ÌìÌÃÔ­„“

Ntorya to Madimba pipeline

The Tanzania Petroleum Development Corporation (TPDC) launched a restrictive tender for the procurement of an engineering, procurement and construction (EPC) contractor for the construction of the gas pipeline from the Ntorya gas field to the Madimba gas processing plant (the Pipeline) in October 2024. It is understood that the process for the award of the EPC contract is almost complete and hope to receive further news from the TPDC shortly.

Following the signing of a Gas Sales Agreement and the award of the Development Licence in 2024, and with the anticipated award of the EPC contract for the Pipeline, there is now a clear path to monetisation of the Ntorya gas field.

Updated field development plan

The operator has updated its field development plan (FDP) for the Ntorya project to reflect the results of the 3D seismic programme. The updated FDP has been presented to the TPDC for approval.

Following production from the Ntorya-1 well (NT-1), Ntorya-2 well (NT-2) and the planned Chikumbi-1 well (CH-1), the FDP anticipates a phased development increasing the field production rate within around a five-year period from 60 million ft³/d to 140 million ft³/d to 280 million ft³/d, subject to the necessary export routes and offtake markets being built and sourced for the additional production. This will be achieved through a drilling programme of an additional 13 wells in the coming decade.

The Company forecasts that all of its capital expenditure requirements will be met through its Carry and future Ntorya revenues.

Operational activities

The operator (ARA Petroleum Tanzania (APT)), continues with the procurement and installation of processing facilities, flow lines, hook-up systems, manifolds and fiscal meters, to ensure the integrated development of the project and enable production from NT-2 into the Pipeline. The NT-2 well is scheduled to be ready to produce gas in time for the completion of the Pipeline.

As previously announced, the drilling of CH-1 and workover of NT-1 are planned to occur after the commencement of production from NT-2 and a further update is awaited from APT on the proposed drilling schedule once the EPC contract for the Pipeline is awarded.

Other operational activities have been completed in recent months, including land acquisition and compensation relating to:

• The CH-1 well pad and access road.
• Extension of the previous Ntorya-3 site for the construction of a workcamp and open yard storage area for operations.
• The upstream processing facilities.
• Rights of way for the NT-1 and NT-2 flowlines.

As previously announced, all casings and tubulars necessary for the drilling of CH-1 and workover of NT-1 have been received, and the wellhead for CH-1 is ready for shipment.

The work programme and budget for 2025 prepared and presented by APT to Aminex and the Tanzanian authorities was approved in November 2024. The total budget is over US$41 million and includes all of the activities set out above.

A very limited competent person’s report (CPR) was prepared for use by the TPDC to justify the construction of the pipeline. A full CPR over the Ntorya gas field is not likely to be commissioned until after the drilling of CH-1 and workover of NT-1.

Charles Santos, Executive Chairman of Aminex commented:

“I am pleased to say significant progress has been made on all fronts of the Ntorya gas development in recent months, following the award of the 25-year Development Licence last year. The Tanzanian government continues to express its full commitment to the project and should confirm the award of the pipeline contract shortly. APT, meanwhile, is preparing the ground for first gas.

“The important seismic results have allowed APT and Aminex to propose a more extensive and longer-term plan for Ntorya, including the additional drilling programme and consequent increased gas production, substantially increasing the potential value for Aminex shareholders. This Ntorya gas will also benefit the Tanzanian people considerably, increasing the reach and reliability of electricity supplies, supplanting dirtier fuels such as coal and wood, and helping boost the country’s industrialisation.

“We thank the Tanzanian government and the TPDC for its support and its steadfast efforts to make the Ntorya pipeline a reality for our project and we thank APT for its continued efforts to progress the development.

We should note that like all big projects with multiple state national and international parties, project timelines can be impacted as the various stakeholders synchronise their workstreams and coordinate processes. Nevertheless, last year has been by all accounts a pivotal year, and we now look forward to a very active and dynamic 2025.”

 

 

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91ÌìÌÃÔ­„“ Pipelines’ March 2025 issue

The March 2025 issue of 91ÌìÌÃÔ­„“ Pipelines includes a keynote section on hydrogen pipeline transport, and technical articles on pipeline construction, protecting pipeline coatings, corrosion under insulation, GIS and pipeline integrity management, and flow assurance.

Read the article online at: /project-news/05032025/aminex-ntorya-operations-update/