Globeleq's Tanzania plant starts commercial operation
HOUSTON, 20 July 2004 – Globeleq today announced the start of commercial operation at its 110 megawatt (MW) Ubungo power station in Dar es Salaam, Tanzania.
Ubungo is part of Globeleq's US$260 million Songas gas-to-power project which brings natural gas to Dar es Salaam, the capital of Tanzania, through a 225 kilometer (140 mile) pipeline from the Songas gas processing plant on Songo Songo Island. Initially, Songas will provide 75MW of gas-fired generation. Conversion of the remaining 35 MW from liquid fuel to natural gas will be completed during the next three months.
The Songas project provides clean, efficient energy to a region previously dependent on hydroelectric power and expensive liquid fuel. The project will provide power to Dar es Salaam and the national grid, as well as to the residents of Songo Songo Island. The Songas pipeline will also supply gas directly to industrial and commercial customers. At the request of the Tanzania Electric Supply Company (TANESCO), Songas plans to expand its capacity by 65 MW later in 2004.
“The Songas project is a good example of our strategy,” said Robert Hart, CEO of Globeleq. “We are building sustainable power businesses in the emerging markets that foster further development of the electric sector and generate commercial returns for investors.”
Torbjorn Caesar, Globeleq Executive Vice President for Africa, said, “We are very excited about this project. It demonstrates Globeleq’s commitment to the emerging markets of Africa. We look forward to a lasting partnership with Tanzania.”
Hon. Daniel Yona, Minister for Energy and Minerals in Tanzania, said: “This project could not come at a better time. We are very pleased that Globeleq invested in this project and value the spirit of partnership that has marked our relationship.”
With new investments totaling US$385 million, Globeleq is the fastest growing operating power company solely focused on the emerging markets of Africa, the Americas, and Asia. Since 2002 the company has acquired more than 2,000 MW of generation capacity, reaching a total of 2,400 net equity MW in 19 projects in 14 countries. The company is actively pursuing acquisitions, seeking to more than double its operating capacity with additional investment of US$700 million.
