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