Gas Distribution
PanAfrican Energy supplies additional gas to power plants through 16" or 8" high pressure pipelines for power generation through the high pressure pipeline hub at Dar es Salaam.
Industrial markets are served by a low pressure ring main distribution system. To meet the needs of its industrial customers, PanAfrican distributes gas through a network that consists of 50 kilometers of low pressure pipeline, three pressure reduction stations and two separate connections to the 16" high pressure pipeline. This network, operated by PanAfrican, currently supplies 36 customers in the Dar es Salaam area.
In addition, PanAfrican has introduced a pioneering project, whereby it provides compressed natural gas (CNG) for use in vehicles, by hotels and industries beyond the reach of the low pressure pipelines. These CNG projects are the first to be developed in East Africa.Market Expansion
Depending on infrastructure additions, there is the potential for significant growth in demand for PanAfrican Energy’s gas.
Both Kenya and Tanzania are currently reliant on heavy fuel oil imported for many industries and for some thermal power generation. Both countries have significant hydro generation capability, but this is dependent on fluctuating annual rainfall levels. To increase system reliability, the installation of additional thermal power generating capacity is a priority in Tanzania and could provide the opportunity for Tanzania to become the thermal hub for East Africa, if additional gas reserves are discovered.
Utilities and Industrial
Annual growth in Tanzania's energy demand is currently averaging between 7 and 9 percent. Over the next ten years, peak electrical demand is forecast to increase by approximately 100 MWs per annum. This presents an enormous opportunity for PanAfrican to provide clean energy and contribute towards powering Tanzania’s development.
In neighbouring Kenya significant increases in electrical demand are also being forecast at approximately 150MWs per year. Mombasa has both large thermal power plants and an extensive industrial sector currently using heavy fuel oil and coal. There are significant opportunities to replace the use of oil and coal with natural gas. If additional gas reserves in Tanzania are discovered this could present a significant export opportunity.
In order to be ready to respond to this prospect, PanAfrican has established a Marketing and Transmission division to examine the potential for a coastal pipeline extending north to Tanga in Tanzania and Mombasa in Kenya. Tanga is located some 220 kilometres north of Dar es Salaam close to the Kenyan border and is the second largest port in the country.