Thursday 29 June 2017

2016 Tanzania - Final draft Natural Gas Utilisation plan 2016 -2045

EXECUTIVE SUMMARY 
Natural Gas Utilization Master Plan (NGUMP) is an integral part of the strategy for the implementation of the National Energy Policy, 2015 regarding the utilization of the resources, the improvement of infrastructures and human capital development in Tanzania. The Government envisages coordinated utilization of gas on the basis of NGUMP, and that to the extent possible, detailed technical and economic analysis should guide selection of the best project for implementation that will address mutual interest of the Nation and investors. NGUMP is a strategic document promoting inter-sectoral coordination in the design and implementation of natural gas development activities.

In its approach, NGUMP takes into account the fundamental reality of the country and the energy sector, recognizing that Tanzania is currently a country with inadequate infrastructure and large labour force that is not yet well qualified to fully support gas development. Therefore, the development of the natural gas industry will contribute significantly to the growth of the Gross Domestic Product (GDP) and stimulate balanced economic and social development.
The objectives of NGUMP are therefore: a) To identify current and future demand and supply of natural gas for local and foreign markets;  b) To set framework for development of infrastructure to supply the market; c) To set financing strategy for gas utilization projects; d) To maximize the multiplier effect of gas in domestic economy (through facilitation of gas to power, methanol, fertilizer, other petrochemicals and establishment of heavy manufacturing industries); e) To promote the use of natural gas as alternative fuel to charcoal and wood for domestic use, feedstock for value added products, industrial heating, power generation and in the transport sector  f) To reduce foreign currency expenditure by replacement of imported liquid fuels; g) To promote long term self-sufficiency, security of supply and environmental friendly source of energy;  h) To promote local content in the natural gas value chain; and i) To promote sustainable upstream activities.
Guiding Principles
NGUMP sets out the following principles, which by their nature, are decisive for the harmonious development of the country, to be observed:
a) Project initiation; b) Regulatory Clarity; c) Coordination of Infrastructure development; d) Education and Training;  e) Promotion and inclusion of SME’s ;  f) Environmental Sustainability;  g) Use of Local Resources; and h) Encourage sustainable resource supply.
Source: PDF document