Distribution

Additional Gas marketed by Orca is supplied to power plants through 16” or 8” high pressure pipelines.  Industrial markets are served by a low pressure ring main distribution system.

Gas sold for power generation by Orca is supplied through the high pressure pipeline hub at Dar es Salaam. To meet the needs of industrial customers, Orca distributes gas through a distribution network that consists of 50 kilometres of low pressure pipeline and four pressure reduction stations.  This network is financed, constructed and operated by Orca.  Gas is currently supplied to 35 customers in the Dar es Salaam area.

In addition, Orca provides 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.

Depending on infrastructure additions, there is the potential for significant growth in demand for Orca’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.

Market Expansion

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 Orca.

In neighbouring Kenya significant increases in electrical demand are also being forecast. If additional gas reserves in Tanzania are discovered this could present a significant export opportunity. Kenya is currently forecasting growth in electrical demand of approximately 150 MWs per year.   

To be ready to respond, Orca 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 Tanzania. 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.