United Republic of Tanzania is one of the poorest countries
on the globe. According to UNDP Human Development Index 2012, Tanzania is one
of the countries in the world with low human development, ranked number 155 out
of 190 countries indexed.
Despite this state of affairs, the East African country has attracted attention from all parts of the world due to its recent discovery of natural gas, said to be one of the largest reserves in Africa. According to the Ministry of Energy, there is the likelihood of gas reserve in Tanzania to increase to 200 trillion cubic feet in just two years to come.
The recent gas discovery in Mtwara region is one of indicators of the energy development trend in Tanzania. According to Tanzania Reports website, already 16 international energy companies are in explorations of gas and oil in Tanzania. Few in the list include British BG Group, Norway’s Statoil, Brazil’s Petrobras, Royal Dutch Shell and Exxon Mobil Corp from America.
Other companies mentioned by Tanzania Petroleum Development Corporation (TPDC) are Pan African Energy, Songas Limited, Maurel & Prom, Ndovu/Aminex, Petrodel, Afren Tanzania, Dominion, Ophir East African Ventures Limited, Beach Petroleum, Dodsal, Heritage Rukwa (TZ) Ltd, Swala Energy, Motherland Homes and Open Acreage.
On June 2013, Statoil and Axxon Mobil Corp were reported to have discovered natural gas after an offshore exploration in Mtwara. The discovery was said to add the natural gas availability to a volume of about 3 trillion cubic feet. One month later, the London based Ophir plc Energy reported another discovery. According to press statement of Ophir Energy published by Tanzania Petroleum Development Corporation, “Estimates for the mean recoverable resource from the discovery are in-line with pre-drill expectations of 0.6 tcf”.
The discovery has come with rapid construction of infrastructures. The ongoing giant projects include the construction of 600mw power plant in Dar es Salaam and 650km gas pipeline from Msimbati village in Mtwara to Dar es Salaam.
The power plant and pipeline construction project profiles form one of the most important documents sold by the Ireland based Research and Markets, the world largest market research store which documents important project profiles and studies around the globe for international industrialists, investors and researchers.
Until February 8, 2014, the pipeline project had already received 47,362 gas pipes from China. This is equivalent to 89 per cent of pipes needed to complete the construction work. The TPDC Managing Director was quoted by media on February saying the construction work is expected to be completed by December this year.
Despite this state of affairs, the East African country has attracted attention from all parts of the world due to its recent discovery of natural gas, said to be one of the largest reserves in Africa. According to the Ministry of Energy, there is the likelihood of gas reserve in Tanzania to increase to 200 trillion cubic feet in just two years to come.
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| Mtwara gas pipes |
The recent gas discovery in Mtwara region is one of indicators of the energy development trend in Tanzania. According to Tanzania Reports website, already 16 international energy companies are in explorations of gas and oil in Tanzania. Few in the list include British BG Group, Norway’s Statoil, Brazil’s Petrobras, Royal Dutch Shell and Exxon Mobil Corp from America.
Other companies mentioned by Tanzania Petroleum Development Corporation (TPDC) are Pan African Energy, Songas Limited, Maurel & Prom, Ndovu/Aminex, Petrodel, Afren Tanzania, Dominion, Ophir East African Ventures Limited, Beach Petroleum, Dodsal, Heritage Rukwa (TZ) Ltd, Swala Energy, Motherland Homes and Open Acreage.
On June 2013, Statoil and Axxon Mobil Corp were reported to have discovered natural gas after an offshore exploration in Mtwara. The discovery was said to add the natural gas availability to a volume of about 3 trillion cubic feet. One month later, the London based Ophir plc Energy reported another discovery. According to press statement of Ophir Energy published by Tanzania Petroleum Development Corporation, “Estimates for the mean recoverable resource from the discovery are in-line with pre-drill expectations of 0.6 tcf”.
The discovery has come with rapid construction of infrastructures. The ongoing giant projects include the construction of 600mw power plant in Dar es Salaam and 650km gas pipeline from Msimbati village in Mtwara to Dar es Salaam.
The power plant and pipeline construction project profiles form one of the most important documents sold by the Ireland based Research and Markets, the world largest market research store which documents important project profiles and studies around the globe for international industrialists, investors and researchers.
Until February 8, 2014, the pipeline project had already received 47,362 gas pipes from China. This is equivalent to 89 per cent of pipes needed to complete the construction work. The TPDC Managing Director was quoted by media on February saying the construction work is expected to be completed by December this year.
The construction of the pipeline enjoyed loan
amount 1.9 trillion Tanzanian Shillings from Exim Bank of China, goes hand on
hand with construction of gas processing plants in Madimba Mtwara and
Songosongo Island. The Dangote Cement factory is anticipated to provide 500
direct employments and 800 indirect employments in Mtwara and Lindi.
Once completed, the power generating plant is expected to produce 600mw, saving about 1 trillion Tanzanian Shillings used to import oil for electricity power generation plants. The development will reduce power tariff for the citizens and also lure more investors to come and invest in the country where energy availability is more guarantied. This will bring about rapid economic development which is likely to move the country from low human development rating to medium level.
But all these development do not come without challenges. The business community in Tanzania has repeatedly complained that local investors are left out in gas and oil exploration deals. The Tanzania Private Sector Foundation chairman, Reginald Mengi has insisted that Tanzanians have capacity to invest on gas and oil industry. On its side, government has emphasized that the sector requires investors with capacity to invest multi-billion of dollars in the preliminary stage before even thinking of getting profit.
At the grass root level, several demonstrations have been carried out by Mtwara residents, protesting the construction of pipeline to Dar es Salaam opined that all gas will be transported to the country’s largest city and leave the Mtwara people sailing in poverty. The demonstration heightened in May 21, 2013 when chaos marred Mtwara town soon after the Minister for Energy and Minerals Sospeter Muhongo told the Parliament in Dodoma that government will continue with the plans of construction of pipeline from Mtwara to Dar es Salaam.
Once completed, the power generating plant is expected to produce 600mw, saving about 1 trillion Tanzanian Shillings used to import oil for electricity power generation plants. The development will reduce power tariff for the citizens and also lure more investors to come and invest in the country where energy availability is more guarantied. This will bring about rapid economic development which is likely to move the country from low human development rating to medium level.
But all these development do not come without challenges. The business community in Tanzania has repeatedly complained that local investors are left out in gas and oil exploration deals. The Tanzania Private Sector Foundation chairman, Reginald Mengi has insisted that Tanzanians have capacity to invest on gas and oil industry. On its side, government has emphasized that the sector requires investors with capacity to invest multi-billion of dollars in the preliminary stage before even thinking of getting profit.
At the grass root level, several demonstrations have been carried out by Mtwara residents, protesting the construction of pipeline to Dar es Salaam opined that all gas will be transported to the country’s largest city and leave the Mtwara people sailing in poverty. The demonstration heightened in May 21, 2013 when chaos marred Mtwara town soon after the Minister for Energy and Minerals Sospeter Muhongo told the Parliament in Dodoma that government will continue with the plans of construction of pipeline from Mtwara to Dar es Salaam.
The incident left several injuries and burnt houses especially those belong to the ruling party (CCM) cadres. Riot police were prompted to use tear gases to disperse the demonstrators. The intensity of the problem prompted also government to order some military men from Tanzania Peoples Defense Force to intervene.
Now that the constructions are progressing well and some of them at the final stage of completion, and the Mtwara community seem to cool down, there is a possibility for Tanzania to be one of natural gas resource giants in Africa. God bless Tanzania, God bless Africa.
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