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Natural Gas Reserves in SDAC Region
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By Oil and Gas Author
Published on 09/1/2006
 

According to the OGJ, SADC contains 9.2 Trillion cubic feet (Tcf) of proven natural gas reserves. The majority of the proven reserves are located in Angola (1.6 Tcf), Mozambique (4.5 Tcf), Namibia (2.2 Tcf), Tanzania, with 800 Billion cubic feet (Bcf) and DRC (35 Bcf). Overall, the region contains approximately 1.9 percent of Africas natural gas reserves. Several projects are underway to expand utilization of natural gas in the region.


Natural Gas Reserves –Angola, Namibia and Tanzania

In Angola, Chevron and Sonangol are developing a liquefied natural gas (LNG) facility to convert natural gas from several offshore fields for export. The facility will process natural gas that is currently flared during crude oil production. The LNG facility will have total production capacity of five million-tonnes-per-year and will be located near the city of Soyo, in northern Angola. The front-end engineering and design study (FEED) for the LNG project should be completed by 2007; however, the facility is not expected to come online before 2010 at an estimated cost of $5 billion. Chevron and Sonangol are the principal stakeholders in the LNG project, joined by partners Norsk Hydro, BP, Total and ExxonMobil.
In Namibia, Tullow Oil (U.K.) is developing the Kudu natural gas field, which is located offshore in Production License 001 and has estimated proven reserves of 1.3 Tcf. The project includes piping natural gas to an 800-megawatt (MW) power plant at Oranjemund, which Namibias state electric company, NamPower, is currently developing. Tullow has plans to drill two appraisal wells on Kudu in early 2007. Tullow operates Kudu with a 90 percent share in the project and is joined by the National Petroleum Corporation of Namibia (10 percent).
Tanzanias Songo Songo natural gas field is located offshore in the Indian Ocean and contains estimated proven reserves of 420 Bcf and additional probable reserves of 85 Bcf. The five wells on the field can produce at a capacity of 1.5 million cubic feet per day (Mmcf/d). However, current marine and land pipeline infrastructure only allows for 70 Mmcf/d of natural gas to be supplied to industrial users in Dar es Salaam. Songo Songo is operated by East Coast Energy Corporation. In April 2006, Canadian-based Artumus Group began drilling appraisal wells in Tanzanias Mnazi Bay. Analysts estimate that the field could produce 10 MMcf/d over a 30-year project life. Tanzania awarded Artumas the license for the Mnazi Bay Block in 2004.


Natural Gas Reserves- Mozambique, Botswana, South Africa

Mozambique has 2.5 Tcf of proven natural gas reserves located offshore in the Temane, Pande and Buzi-Divinhe fields. In 2004, Sasol began piping natural gas from the Temane and Pande fields through a 537-mile, $1.2 million pipeline. To date this is Mozambiques only source of hydrocarbon production; however, exploration for additional natural gas reserves in the country continues. In June 2005, Sasol signed an exploration and production contract for Blocks 16 and 19 offshore Mozambique.
In March 2004, the US Trade and Development Agency (USTDA) provided a grant to the Botswana Development Corporation (BDC) to complete a feasibility study on the development of a coal bed methane (CBM) project. In August 2005, production of the CBM pilot project began at the Lephehpe coal field. The area contains an estimated 12.8 Tcf of CBM. Additional studies of the Kalahari Karoo basin by Advanced Resources International have found that the area could contain a total of 196 Tcf of gas-in-place resources, of which, 40 Tcf could be recoverable.
In 2000, a natural gas discovery was made in Block 2A in South Africa, which is likely part of the reservoir that extends to Namibias Kudu prospect. US-based companies Forest Oil Corporation (operator) and Anschutz, along with BEE Company Mvelaphanda, are in the process of exploring for additional natural gas in Block 2A. In August 2003, PetroSA purchased a 30 percent share in the Ibhubezi Gas Field project. PetroSA hopes that natural gas from Ibhubezi, along with natural gas from Namibia and Mozambique, can be used at its 45,000 bbl/d Mossel Bay gas-to-liquids (GTL) plant, where reserves may be depleted by 2007.