Friday, 2 December 2022

Aminex 30KM Gas Pipeline Construction

 As in the most recent RNS, the Tanzanian Minister of Energy and Managing Director of TPDC outlined the Government's strong commitment to:

· Develop additional gas resources as soon as possible;

· Accelerate Ruvuma's production, which will play a vital role in achieving the country's short to medium-term gas needs; and

· Construct a 30 km pipeline to tie the Ntorya gas field into the existing Madimba processing and pumping station in the next six to nine months.

Here we link to two unrelated videos that show the building and complexities' when putting a pipeline project together.  The second is a much larger and longer project than that of Aminex and ARA partnership, but it does show how there is much more than construction to be done by way of planning and sourcing of material etc.


TPDC  announced earlier in the year through their local news media that they were already planning the route and negotiating reparations with landowners, it is clear that the government is right behind the project and it appears it is just a matter of time before first gas as in the operations update RNS 1st November....

The Company is however pleased to provide the market with an update on current operational activities:

· APT and the Tanzania Petroleum Development Corporation ("TPDC") are in advanced negotiations to accelerate gas production from the Ntorya gasfield. The proposal, following the successful drilling of CH-1, is to utilise the newly drilled well and the existing suspended gas producers, Ntorya-1 ("NT-1") and Ntorya-2 ("NT-2"). This is expected to lead to gas production and receipt of production revenues in early 2024, almost 12 months earlier than originally envisaged.   (PSA amendment to agreement now signed as RNS 28th November 2022)

· The acceleration of production through the initial three wells is strongly supported by the Tanzanian authorities and is based on the following:

 Commitment by the TPDC to construct a 30 km pipeline as soon as possible to tie the Ntorya gasfield into the existing Madimba processing and pumping station.

 The incorporation of three producing wells - CH-1, NT-2 and NT-1, the latter of which will be worked-over after the drilling of CH-1 to repair a minor leak in the casing string.

 The three wells are expected to produce at least 60 mmscfd in aggregate.

 The estimated gross capital budget for 2023, which has been approved by the joint venture partners, is US$30.8 million, includes the processing and interpretation of the 3D seismic data, drilling and testing of CH-1, re-entry and work-over of NT-1, together with the purchase of the necessary manifold, flowlines, fiscal meters and hook-up system to facilitate early production.

 Early production success, from the initial three well development, will see the drilling of up to five additional development wells taking the expected field gas production to rates in excess of 140 mmscfd, as previously reported.

· Negotiations continue regarding the finalisation of gas terms and gas pricing.

· The Ruvuma 3D seismic acquisition programme, the largest 3D survey to have been conducted to date in onshore East Africa, completed on 9 October 2022 and the processing and interpretation of data will continue into 2023.


Aminex, with a 25% non-operated interest, is carried throughout the ongoing work programme to a maximum gross capital expenditure of $140 million ($35 million net to Aminex). The carry is expected to see the Company through to the commencement of commercial gas production from the Ntorya gas field, currently scheduled for early 2024, at zero cost.