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Orca Exploration creates new infrastructure division

Monday, July 19, 2010 (Source: Datamonitor)

Orca Exploration Group has created EastCoast Transmission and Marketing as the new infrastructure division of the company.

Orca is currently in discussion with potential pipeline expansion partners and is keen to have a significant East Africa finance component as part of the infrastructure project, the company said.

EastCoast Transmission will initially focus on expanding the onshore natural gas pipeline system transporting Songo Songo gas to Dar es Salaam. This will reportedly require the twinning of the existing 207km pipeline from Somanga Funga, where the marine pipeline from the Songo Songo gas field connects to the mainland, to the pipeline's current terminus at Dar es Salaam.

Orca has undertaken some preliminary engineering studies for this section. It is expected that the pipeline could be extended along the coast, north to Mombasa and south to Mtwara near the border with Mozambique near the Mnazi Bay gas discovery, the company added.

David Lyons, chairman and CEO of Orca Exploration, said: "The time is right to move on this expansion. The markets for natural gas are opening up in East Africa and there is significant potential demand from the power sector. However infrastructure remains a bottleneck that urgently needs to be addressed."

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