Wentworth gains on high Tanzanian gas demand
Gas production at London-listed Wentworth Resources is on track to average over 80mn ft3/day this year on the back of strong demand in Tanzania, the company reported on December 16.
Wentworth cited economic growth, continued demand in the industrial sector and weak hydroelectric generation due to low rainfall as factors behind the high level of gas consumption in the east African country. This has benefited the Mnazi Bay gas project, where Wentworth has nearly a 32% stake. Indonesia's Pertamina has 48% and Tanzania’s state-owned TPDC 20%.
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Wentworth's production this year is set to surpass the high-end of the company's guidance of 70-80mn ft3/d and reach 23% higher than the level in 2020. The company raised this guidance from 65-75mn ft3/d in June. Production so far in December has averaged 102mn ft3/d.
Wentworth said operating costs at Mnazi Bay remained low, and that the project partners had delivered on their 2021 work programme, which involved slickline operations at three wells, refurbishment work at another well and a pre-front end engineering and design study on installing a compressor station, due for completion in 2023. The company added it would look at growth opportunities both within the Mnazi Bay licence and in the greater geographical region.
"The demand dynamics in Tanzania are becoming increasingly compelling with an ambitious economic growth plan set to accelerate energy demand further over the coming years," Wentworth CEO Katherine Roe said in a statement. "And whilst driving up energy access through our natural gas production has a transformational role to play on the socio-economic outcomes for our communities in Tanzania, we have also used this year to ensure we are playing a responsible role in mitigating and minimising our impacts as much as we can and as quickly as we can."
Wentworth recently entered into a memorandum with commodities trader Vitol on the supply of carbon credits to offset emissions from the Mnazi Bay project.