350
W. Karanja and N. Njenga
Tanzania saved about USD 6.5 Billion after moving from heavy fuel oil
(HFO) and diesel to natural gas to generate electricity.
25
As of March 2016, the discovered reserves of natural gas in Tanzania
amounted to 57.25 trillion standard cubic feet (TCF).
26 There is a
current proposal for a two-train liquefied natural gas (LNG) export
facility in Lindi, Tanzania, involving a consortium of Norway’s Equinox,
Royal Dutch Shell, ExxonMobil, UK-based Ophir Energy and Singapore’s Pavilion Energy. However, as of November 2019, the parties were
still yet to sign an agreement with the Tanzanian Government, with the
Government citing that it wished to negotiate a favourable commercial
deal that would not be costly or loss-making for the country. Tanzania
has no commercial oil discoveries and is a net importer of petroleum
products. It is estimated by the US Energy Information Administration
(US EIA) that Tanzania consumes about 35,000 barrels of oil per day of
refined oil products.
27
Currently, natural gas from Mtwara and Lindi is transported from
Mtwara through Somanga to the Ubungo electricity generation plant in
Dar es Salaam through a gas pipe with a capacity of 8.1 cubic metres per
year which is owned and managed by Gas Supply Company (GASCO)
Ltd. Prior to the construction of the pipeline in late 2013, there were
mass violent protests by community stakeholders challenging the entry
of this project resulting in damage of approximately USD 650,000
28
25 ESI Africa. 2018. “Tanzania: Use of Natural Gas Can Boost Economic Growth”,
2018. https://www.esi-africa.com/industry-sectors/business-and-markets/tanzania-use-of-naturalgas-can-boost-economic-growth/, accessed May 27, 2020.
26 Ng’wanakilala, Fumbuka. 2017. “Tanzanian President Splits Energy and Mining in Ministry
Shake-Up”. Reuters, 2017. https://af.reuters.com/article/topNews/idAFKBN1CC0BF-OZATP,
accessed May 27, 2020.
27 “Tanzania—EIA Analysis”. 2016. Eia.Gov. https://www.eia.gov/beta/international/analysis.
php?iso=TZA.
‘Tanzania—International—Analysis—US Energy Information Administration (EIA)’
(Eia.gov, 2016).. https://www.eia.gov/beta/international/analysis.php?iso=TZA accessed May 27,
2020.
28 https://www1.oanda.com/currency/converter/.
W. Karanja and N. Njenga
Tanzania saved about USD 6.5 Billion after moving from heavy fuel oil
(HFO) and diesel to natural gas to generate electricity.
25
As of March 2016, the discovered reserves of natural gas in Tanzania
amounted to 57.25 trillion standard cubic feet (TCF).
26 There is a
current proposal for a two-train liquefied natural gas (LNG) export
facility in Lindi, Tanzania, involving a consortium of Norway’s Equinox,
Royal Dutch Shell, ExxonMobil, UK-based Ophir Energy and Singapore’s Pavilion Energy. However, as of November 2019, the parties were
still yet to sign an agreement with the Tanzanian Government, with the
Government citing that it wished to negotiate a favourable commercial
deal that would not be costly or loss-making for the country. Tanzania
has no commercial oil discoveries and is a net importer of petroleum
products. It is estimated by the US Energy Information Administration
(US EIA) that Tanzania consumes about 35,000 barrels of oil per day of
refined oil products.
27
Currently, natural gas from Mtwara and Lindi is transported from
Mtwara through Somanga to the Ubungo electricity generation plant in
Dar es Salaam through a gas pipe with a capacity of 8.1 cubic metres per
year which is owned and managed by Gas Supply Company (GASCO)
Ltd. Prior to the construction of the pipeline in late 2013, there were
mass violent protests by community stakeholders challenging the entry
of this project resulting in damage of approximately USD 650,000
28
25 ESI Africa. 2018. “Tanzania: Use of Natural Gas Can Boost Economic Growth”,
2018. https://www.esi-africa.com/industry-sectors/business-and-markets/tanzania-use-of-naturalgas-can-boost-economic-growth/, accessed May 27, 2020.
26 Ng’wanakilala, Fumbuka. 2017. “Tanzanian President Splits Energy and Mining in Ministry
Shake-Up”. Reuters, 2017. https://af.reuters.com/article/topNews/idAFKBN1CC0BF-OZATP,
accessed May 27, 2020.
27 “Tanzania—EIA Analysis”. 2016. Eia.Gov. https://www.eia.gov/beta/international/analysis.
php?iso=TZA.
‘Tanzania—International—Analysis—US Energy Information Administration (EIA)’
(Eia.gov, 2016).. https://www.eia.gov/beta/international/analysis.php?iso=TZA accessed May 27,
2020.
28 https://www1.oanda.com/currency/converter/.