19 April 2017

Tanzania: Mtwara-Dar es Salaam Gas Pipeline Capacity to Increase Progressively

Photo: East African Business Week
Tanzania wants to join the Persian Gulf states to become one of the world’s leading natural gas exporters.

The completion of all the gasfired power projects will bring the Mtwara-Dar es Salaam gas pipeline into almost full capacity, the Tanzania Petroleum Development Corporation (TPDC) Acting Managing Director, Mr Kapuulya Musomba, said in Dar es Salaam yesterday.

He said the capacity use of the 1.2 billion US dollars gas pipeline is expected to reach 10 per cent from only 6 per cent currently after the completion of the 240MW Kinyerezi II plant expected to takeoff next year.

"The gas pipeline full capacity is expected to be reached by 2022 where most of the gas firedplants will be completed," he said, adding that currently it may be said that the pipeline is underutilised due to the delays in the implementations of the gas fired power plants. He said the gas pipeline has been set up to reach in its full capacity within 10 years period.

The construction works of the 240 MW Kinyerezi II worth 432 million US dollars was launched last year with the government of Tanzania contributing 15 per cent of the total project investment.

Other gas fired power projects are the Kinyerezi III and IV. After the completion of all the projects, the nation is expected to save up to 1 billion US dollars annually on oil imports for electricity generation.

The 1.22 billion US dollars Mtwara-Dar es Salaam pipeline and gas processing plants at Madimba and Songo Songo Islands make part of a plan to add about 2,000 MW of new gasfired electricity generating power by next year to boost the capacity to 10,000 MW by 2025.

Tanzania recently announced the discovery of 2.17 trillion cubic feet (tcf) of natural gas reserves at the onshore Ruvu Basin block 30 km westward from Dar es Salaam in Tanzania's coastal region, raising the country's reserves to 57.17 tcf up from 55 tcf in June, 2015.

However, the country has a potential natural gas reserves up to 441 trillion cubic feet solely in the coastal region, according to the US Geological Survey.

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