Low power demand compels Artumas to produce only 6MW

Low power demand compels Artumas to produce only 6MW

2007-10-20 09:34:28
By Guardian Correspondent, Mtwara

The Managing Director of Artumas Group Gas Ltd, Salvatory Ntomola has lamented that his company was at the moment gaining very little profit due to the low production and low demand of power in the two southern regions.

Ntomola said Artumas has the capacity to produce up to 24 MW, but because the demand is low, maximum production for both regions is 6MW,` he noted.

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

`The more power we can produce the more cost effective and profitable our business becomes and that is why we are in discussion with the government for the same,` he noted.

The deputy minister for energy and minerals, William Ngeleja who is on a tour of Mtwara, said at the company premises that the government is in dialogue with the gas company to enable it increase its capacity and produce up to 300MW in Mtwara for use in other parts of the country.

`We have talked to them, and told them about our priorities, that we would like the power to be used within the country to stimulate industries especially fertiliser and gas related factories, since we are still buying fertiliser from abroad.

Ngeleja, visited Artumas power plant in Mtwara town as well as the gas processing facility located at Msimbati.

He said the government is aware of the company`s intention to increase power production from the current 6 MW supplied to Lindi and Mtwara towns up to 300 megawatts.

But, he added that the initial plan should not be to sell the whole big quantity abroad, as that may come later,` he said.

`I have told Artumas that the government is very sincere and cannot give them permission to go ahead on producing that large amount of power and refuse to buy it from them,` Ngeleja explained.

* SOURCE: Guardian

Low power demand compels Artumas to produce only 6MW