StockMarketWire.com - Aminex is pleased with progress being made at the Kiliwani North development licence in Tanzania.

It says commissioning of the power generation system and other auxiliary facilities has been completed and commissioning of the gas plant and sub-sea pipeline began on 1 June.

On 2 June the first Kiliwani North-1 gas was processed and entered the pipeline system connecting the Songo Songo plant with the national pipeline.

During the commissioning, gas rates are planned to increase to 30 mmscfd while pressuring up the plant and pipeline.

Aminex and its partners have invoiced TPDC for both April and May gas production in accordance with the terms of the signed Gas Sales Agreement.

All gas produced during the build-up to full production rates will be paid for under the terms of the agreed Gas Sales Agreement signed with the sole buyer, Tanzania Petroleum Development Corporation ("TPDC"). Aminex will receive US$3.00 per mmbtu (approximately US$3.07 per mcf). The gas price is not linked to any commodity price so importantly is unaffected by current commodity market conditions. The gas delivery point is at the outlet flange of the Kiliwani North wellhead and, by selling the gas at the wellhead, the joint venture partners will not be liable for pipeline transportation and processing fees.

Chief executive Jay Bhattacherjee said: "We are pleased with the progress made so far at Kiliwani. The well has been performing very well and commissioning is so far on schedule. The Company continues to focus on delivering production growth through Kiliwani and driving its appraisal and eventual development programme at Ruvuma."





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