Artumas to increase power output

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Correspondent, Mtwara
Daily News; Friday,October 19, 2007 @00:01

THE Government is in talks with the Mtwara-based Artumas Group to increase power generation to 300MW for use in other parts of the country.



"We have talked to them and listed our priorities. We want power from Mtwara to be used within the country and stimulate industries especially those of fertilizer because we are still importing the product,” Deputy Minister for Energy and Minerals William Ngeleja said.



The deputy minister visited Artumas power plant in Mtwara and gas processing facility at Msimbati, where he stressed that the government vision was to see the power generated was utilised in the country but future plans could change.



“The government is very aware of the firm’s plans to increase power production from current six megawatts supplied to Lindi and Mtwara up to 300 megawatts. But we insist that initial plans should not be to export all power, although that could be done at a later stage,” he pointed out.



The Managing Director of Artumas Group Gas Limited, Mr Salvator Ntomola, said his company was enhancing its production, pointing out that the company was at the moment making little profits due to the low production and low demand for power in the two regions.



"Currently we have the capacity to produce up to 24 MW, but because the demand is low here, then our maximum production for both regions is 6MW,” he noted.



He added that discussion with the government regarding the bigger electricity project centered on and around contracts with the government, TANESCO, donors and TPDC among other things.



He stated that the current electricity production plan was not cost effective because only small quantity was produced, which will otherwise require continuous subsidy to meet maintenance and service costs, let alone running costs