1 tcf, page-15

They are advancing the production of compressed natural gas at Sono Songo...

Small volums at present (about 2-4mmcf/d) I believe...but a clear path to higher prices via export seems obvious.

Will be interesting to see what KEY's strategy might be in this regard, as this would open the field to international markets at premiums much higher than available locally.

Arguably, if the combined Songo Songo/Kiliwani...and any other discoveries in the region... prove large enough, then an LNG plant may be on the cards, which of course would change the dynamics even furhter.

As for cheap prices for Songo Songo gas in Tanzania...need to remember some 24mmcf/d of Songo Songo production actually belongs to the Government and is bought as "protected gas", capped to a sliding scale from prices set some 5 years ago...this is used to fire the power generators and forms part of the initial funding regime for the pipeline infrastructure.

Songo Songo is only recently starting to produce in excess of this protected gas requirement as I understand it...all gas above here is typically aimed at industry, which is currently paying in the $6-$10/mcf range.

Cheers!