Part D of the Project relating to the IPTL fuel conversion from HFO to gas has not been implemented to date.
However, TANESCO has engaged a consultant-contractor to carry out the engineering and detailed design work for the conversion of the lO x lO MW IPTL power plant to use natural gas from HFO. The engineering detailed design has been completed and successfully
tested for conversion of the Wartsila 38, lOMW units.
A detailed timeline has been drawn up. It is expected that works on conversion will begin when gas is available to allow the converted IPTL plant to operate using natural gas, which is expected after the third and fourth gas processing trains are commissioned at the Songo Songo island and the rental emergency gas fired
power plants are decommissioned at Ubungo. Current projections are that work on conversion would begin in January 2009 and IPTL units would be converted to gas firing in a phased mamier. TANESCO expects to complete the conversion of all units by the end of 2009. This conversion will allow for significant reduction ofenergy charges for the IPlL plant (cost of HFO vs indigenous gas) and after conversion it is expected that the IPlL plant will continue to be dispatched at fairly high load factors. The payback period for this investment, at current HFO prices at 50% load factor, is expected to be less than 1 year..