China Petroleum Pipeline and the China Petroleum Technology & Development Corporation have been awarded a contract by the Tanzania Petroleum Development Corporation (TPDC) to construct a new gas pipeline.
The companies will provide engineering, procurement and construction (EPC) services for the proposed gas pipeline, which will connect the onshore Ntorya gas field to the Madimba gas processing plant in Tanzania.
The Ntorya development licence area is strategically located near large liquefied natural gas (LNG) projects stretching from offshore Tanzania to Mozambique.
Aminex, an Africa-focused oil and gas company, holds a 25% non-operated interest in the project.
The joint venture (JV) partners aim to supply Ntorya's gas to Tanzania's domestic market, contributing to the reduction of energy poverty and supporting the country's energy transition.
Aminex executive chairman Charles Santos stated: "We are delighted to receive confirmation of the award of the EPC contract for construction of the Ntorya to Madimba pipeline. This is a major milestone, reflecting the commitment of the Tanzanian government to progress the project, and follows the signing of a gas sales agreement, the award of the development licence that locks the project in for 25 years, and the update of a field development plan with upgraded production figures - all in the past 18 months.
“The signing of the contract… demonstrates the Tanzanian government's conviction of Ntorya's enormous value to Tanzania as a world-class gas resource that will help alleviate energy poverty, boost industrial development and improve the lives of ordinary people - a conviction that we share at Aminex.
“We thank the TPDC and all Tanzanian agencies for working together to reach this major milestone and look forward to providing a more detailed update to the market as soon as we can."
Aminex is financially covered for the ongoing work programme up to $140m ($35m net).
This financial arrangement will fund the company's involvement until the Ntorya field begins commercial gas production, effectively at no cost to Aminex.
