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Tanzania allocates budget for natural gas development activities

In Tanzania, the Natural Gas Utilisation Master Plan (NGUMP) is ready for implementation, effective this year, said Tanzania’s Industry, Trade and Investment Minister, Charles Mwijage.

Explaining the plan, Mwijage said the document primarily focuses on promoting inter-sectoral coordination in the design and execution of natural gas development activities, Tanzania Daily News reported.

NGUMP is said to be an integral part of the strategy to implement the National Energy Policy, 2015 on resource utilisation, infrastructure improvement and human capital development in the country.

Presenting the ministry of energy and minerals’ budget estimates for the 2017/2018 fiscal year, Mwijage told the August House that while government envisages coordinated uses of gas, detailed technical and economic analyses were vital to enable the country select the best project that will address mutual interest of the nation and investors, for implementation, media stated.

Natural gas development activities

The minister noted that in its approach, the master plan takes into account the country’s reality and the energy sector, saying Tanzania still lacks adequate infrastructure and qualified labour to support gas development. Read more…

“With this plan, the development of the natural gas industry will contribute significantly to the Gross Domestic Product growth and stimulate balanced economic and social development,” he said.

Media further reported that Mwijage said the document will help in identifying the current and future demand as well as supply of natural gas for local and foreign markets.

It will also set financing strategies for gas utilisation projects, improving the country’s gas development activities.

Natural gas for domestic market

According to the minister, within the 30-year period, it is expected that 18.7trl Tcf of natural gas will be used in the domestic market, with the top priority being the use of the gas for production of electricity. Read more…

This year’s energy and minerals ministry budget has been pegged at $419 billion down from last year’s $50 billion, media reported.

Minister Mwijage said that 94% of the budget will be directed to implementation of development projects.


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Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.