HomeRegional NewsEast Africa‘Natural gas saves Tanzania $7.4bn’

‘Natural gas saves Tanzania $7.4bn’

According to the Tanzania Petroleum Development Corporation (TPDC), as from 2004 through 2015, the government has saved an estimated $7.408 billion over the use of natural gas, formally spent in the importation of Heavy Fuel Oil (HFO), diesel, petrol or jet fuel.

TPDC senior research officer, Aristides Katto, told local media Tanzania Daily News that the discovery of natural gas has accelerated promotion of the industrial sector in the country.

According to Katto, during the year under review, about $6.754 billion was for electricity, $653.48 for industries and as much as $278,455 spent by institutions.

Media reported that he advised the country to get ready for vast industrial investments with a $2 billion fertiliser plant lined up for Lindi to commence.

Katto said: “The land for the project has already been acquired in Kilwa Masoko. The plant will have an installed capacity to produce 2,200 and 3,850 metric tons of ammonia and urea per day respectively.”

Large amounts of natural gas required

Katto also stated that the project will require gas at a rate of 104 mmscfd for 20 years and will create employment for over 5,000 people.

According to the media, TPDC is still in the process, together with its partners, to register a joint venture company comprising of Tanzania Mbolea and Petrochemical Company, which will collaborate with Ferrostaal Industrial Projects GmbH of German, Fauji Fertiliser Company from Pakistan and Haldor Topsoe of Denmark to implement the project.

It is reported that industry experts have noted that the 104 mmscfd is a huge amount of gas required to power the projected state of the art facility and implementing partners will need a relatively cheap gas to commence production.

The regulator is reported to have stated that it is still in talks with development partners to raise funds for the installation of about 15 refuelling stations in Dar es Salaam, connect 30,000 households and serve some 8,000 vehicles in the city.

Feasibility studies for the project and a detailed engineering design have been completed with Japan International Cooperation Agency (JICA) and the African Development Bank (AfDB) expressing interest to finance the project, media reported.

Featured image:Bilfinger SE

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.