Tanzania: Tanzania Petroleum Development Corporation Signs Deal With Energetech-Tantel For Nationwide Gas Distribution

The Tanzania Petroleum Development Corporation (TPDC) has signed a landmark deal with Energetech-Tantel for the nationwide distribution of natural gas via road and rail infrastructure over the next 12 months.

This agreement will pave the way for an investment of between $80 million and $200 million to supply gas to four regions: Dodoma, Geita, Mwanza, and Kigoma.

According to the Energy Commissioner for Petroleum and Gas at the Ministry of Energy, Mr. Goodluck Shirima, the first delivery of natural gas is expected almost 12 months after the signing of the memorandum of understanding (MoU).

“This project will help supply gas to the country’s capital, Dodoma, as well as key production areas in the central regions, which have shown high gas demand,” Mr. Shirima told reporters in Dar es Salaam.

Currently, only four regions benefit from access to natural gas: Lindi, Mtwara, Coast, and Dar es Salaam. However, the government’s goal is to ensure that gas reaches all regions in the country.

Mr. Shirima added that the government is committed to building a gas-based economy, taking advantage of the abundant natural gas reserves, and that various initiatives are underway to develop this resource.

The project will involve the construction of natural gas receiving centers and the distribution of gas to households, vehicles, and industries along the central corridor.

Energetech-Tantel Holdings President and Chief Executive Director, Mr. Daniel Gabai, said the planned investment of between $80 million and $200 million will support the government’s vision of building a natural gas-driven economy. “We believe Tanzania will become a leading force for growth in Africa over the next decade, and this project will be the most efficient clean energy project on the continent, serving both local and regional markets,” Mr. Gabai said.

TPDC Managing Director, Mr. Mussa Makame, stated that the project will enable the transportation of large volumes of natural gas and ensure its efficient delivery to different parts of the country.

“Accelerating gas production with a commercial focus and involving the private sector is key to our strategy,” Mr. Makame said. He further noted that once the project is completed, it will cover the entire country, but implementation will be done in phases, with operations expected to begin within the next 12 months.

Source: https://energynewsafrica.com