Tanzania ideal destination for LNG related businesses

11May 2016
Dickson Ng`hily
The Guardian
Tanzania ideal destination for LNG related businesses

TANZANIA presents an ideal place for business investment opportunities particular in gas related industries following huge discovery of natural gas in the country, Deputy Permanent Secretary in the Ministry of Energy and Minerals Prof James Mdoe has said.

TPDC Ground Station

Prof Mdoe said this when officiating at a two-day Liquefied Natural Gas (LNG) stakeholders’ awareness workshop held in Dar es Salaam yesterday, an event that attracted local and international participants from the oil and gas sector.

“This will be among the huge sectors in the East and Central Africa region, off course you understand that the same is happening in Mozambique. So the government is committed to support projects which will attract more investment, transfer of technology as well as embracing local content in terms of goods and services provision,” he said.

He said that over the past two years many have spoken positively on the importance of LNG to the national economy and how it will be transformed following significant discovery of natural gas.

He went on to add that LNG will also link the country with other economies thus increasing the country’s strategic importance in her engagement in the region.

“The government understands the current situation in the oil industry where prices have dropped but we are optimistic that the prices will stabilise to some extent in the so distant future,” he said.

Eelier, Director for Corporate Strategic Planning of the Tanzania Petroleum Development Corporation (TPDC) Nathan Mnyawami said the awareness and perception of the gas industry is very critical to all key stakeholders and that is why the workshop was planned.

Last month, media reports indicated that the country had discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits, raising the nation's total estimated recoverable natural gas reserves to more than 57 tcf.

The onshore reserves were found at a field licensed to the United Arab Emirates' Dodsal Group located at Ruvu basin in Coast Region, near the country's commercial capital, Dar es Salaam, the state-run Daily News reported.

"We have learnt that there are huge potentials of hydrocarbons in Tanzania. We expect to have more gas discoveries in the near future," media reported quoted Pilavulathill Surendran, CEO of Dodsal Hydrocarbons and Power (Tanzania) Ltd, as saying.

Most of the gas discoveries in Tanzania were made in deep-sea offshore blocks south of the country near the site of a planned LNG plant. The discoveries have the potential to accelerate development and drive the country’s transformation into a significant global LNG industry participant.

BG Group acquired by Royal Dutch Shell, along with Statoil, Exxon Mobil and Ophir Energy plan to build the onshore LNG export terminal in the southern Tanzanian town of Lindi in partnership with state-run Tanzania Petroleum Development Corporation (TPDC).

East Africa is a new hotspot in hydrocarbon exploration after substantial deposits of oil were found in Uganda and major gas reserves discovered in Tanzania and Mozambique.