Tanzania gas pipeline launched

By on October 28, 2015 in Infrastructure, Midstream, Oil & Gas with 0 Comments

Tanzania has initiated a US$1.33bn project to pipe natural gas to its commercial capital, Dar es Salaam, and help relieve chronic power shortages in the city, reports Reuters Africa. The 532km Mtwara-Dar es Salaam pipeline and gas processing plants, largely financed by a Chinese loan, is part of a plan to add about 2,000 megawatts of new gas-fired electricity generating power by 2018 to increase Tanzania’s generating capacity to 10,000 MW by 2025. Most new plants will be gas-fired but Tanzania also wants to use coal reserves and renewable resources such as wind and geothermal.

The expanding capacity will help meet domestic demand as the government connects more people to the national grid beyond the 40% who are connected now, and offer the opportunity to export to neighbours. The report says Tanzania estimates it has about 55 trillion cubic feet (tcf) of recoverable natural gas reserves off its southern coastline. Discoveries in Tanzanian and Mozambican waters have led to predictions the region could become the world’s third-largest exporter of natural gas. The government said it hopes by switching to gas-fired power plants to save around $1bn a year in oil imports for electricity generation after the completion of the pipeline.

Source: Reuters Africa

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About the Author

About the Author: Eugene Obiero is the founder of The Africa Resources Post and its predecessor The East African Energy Blog. Eugene has been writing and blogging on energy and extractives in Africa since June 2012. He is based in Nairobi, Kenya and works for Camco Clean Energy (http://www.camcocleanenergy.com/ ) as Senior Manager Africa Projects. He specializes in market entry strategy, research, financial advisory and project management. Eugene has an MBA from The Warwick Business School, University of Warwick (UK). The posts on this blogsite are Eugene's and do not necessary reflect the thinking of his employer, Camco Clean Energy. .

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