Tanzania drills first coal gas well

September 14, 2012

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Government-owned TANCOAL Energy of Tanzania and Australia-based Intra Energy drilled Tanzania's first coal gas well at the Ngaka coal mine, Tanzania's Daily News reported Friday (September 14th).

The well is the first of five wells that will be drilled in the area, according to Executive Chairman of Intra Energy Graeme Robertson. Each of the wells is expected to generate one megawatt of electricity.

TANCOAL plans to generate 240 megawatts of energy from coal at the Ngaka mine by 2015, which is double its earlier estimate, Mr. Robertson said. The increase was due to discovery of more deposits.

Managing Director of Tanzania's National Development Corporation Gideon Nasari said that the development was encouraging for Tanzania's cement industry, which currently uses imported coal at 390,000 shillings ($250) per tonne. Domestic coal will come at half the price, he said.

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