TANZANIA has started to observe some saving generated
after using natural gas as it slowly walking toward a gas based economy.
Mr Hanna said going by government projection to
industrialize the nation stakeholders should start addressing supply issue
before demand overtake it in next five years. “If the
industry demand is real
[as per government projections], it is time to discuss for the future,” Mr
Hanna said. The firm said Dar es Salaam is the regional gas hub and at the
moment suppliers are meeting domestic demand. The region needs are yet to be
touched. And, the country has the potential to become a Liquefied Natural Gas
(LNG) exporter— but investment and contracts extension should start now. Based
on BP’s energy outlook 2017, natural gas consumption in industry and power will
grow at a rate of 1.6 per cent per year until 2035. This signals a potential
future export market for Tanzania’s LNG. Looking forward, Arthur G. Kanza an
expert in oil and gas said in one of his articles, planners and policy makers
must understand the role of gas as an alternative source of energy. Quickly
implement proper solutions that will leverage its exploitation, energize the
national economy and potentially restore a positive balance of trade to the
benefits of the people of Tanzania.
On real term, natural gas has already saved the economy
almost 1.4tri/- each year or 14 tri/-or 6.2billion US dollars for the last 13
years—from Songosongo field alone. The area is estimated to have 1.0tcf of gas
reserves.
The saving, according to Pan Africa Energy that made the
calculation, was made by offsetting liquid fuels—heavy fuel oil (HFO). The
amount saved in the last 13 years since gas pumping from Songosongo started
equals to almost half the 2017/18 budget of 32tri/-.
Pan Africa Energy (PAET) Deputy Managing Director Andrew
Hanna said the saving tipped to increase after many industries starting to
switch to natural gas. “Some industries are now using gas to generate power
(withdrawing diesels) to offset power fluctuation,” Mr Hanna said. So far some
40 industries have connected to the natural gas distribution network of Pan
Africa.
On top of that the firm, through Songas, enabled the
country to produce clean, reliable, low cost electricity. “We were the first
gas to power project in East Africa – becoming the driver for significant
skills development in oil and gas in Tanzania,” Mr Hanna said.
Also the natural gas has allowed countless smaller
businesses to develop and flourish in the country. Due to the demand,
stakeholders are currently working out on increasing natural industrial gas
supply, which was snowballing fast.
Also experts have it that once the country moves to gas
economy it is anticipating saving the economy some 2.2tri/- annually as
reserves cross 55 trillion cubic feet (tcf). The estimation done last year may
rise in future to the better levels since several explorations are on-going in
southern areas.
Even at the current discoveries, Tanzania is now firmly
on the world energy map as a hot spot for the global energy industry. While the
country figuring out export opportunity, at the moment the gas from Songosongo.
According to Tanzania Petroleum Development Corporation
(TPDC), the gas demand has doubled from 145 million standard cubic feet per day
(mmscfd) last year to 300mmcfd to date.
TPDC acting Managing Director Kapuulya Musomba said at
the moment gas supply was ahead of demand but working on meeting the need as
per the industrialisation drive.
“The supply at the moment is good. We can pump 300million
cubic foot a day from Mnazi Bay and Songo Songo. The supply will be boosted
further when gas from another field at Nturya in Mtwara comes in…,” Mr Musomba
said.
TPDC, tasked for distribution of gas, currently is
working into a study to map out the gas requirement across the
country—especially in the Coast Region—to be ready in this fiscal year.
“The study will determine the industrial demand and open
gates for how much to be increasing to meet supply and sourcing funds to
upgrade pumping facilities,” Mr Musomba said. He said meantime before
completion of the study they are supplying gas in an ad-hock plan when the need
arises.
“The industrial area in Coast Region is growing rapidly.
This is an area where we will supply gas in ad-hock situation,” He said. For
instance in the next two weeks, TPDC would join 12 factories in Coast Region
with natural gas—among them Bakhresa juice plant, steel rolling firm among
others in Mkuranga District. After supplying Coast industrial area the pipeline
will be extended to Bagamoyo then Tanga.
However, experts in natural gas industry are figuring
that given the government ambition to industrialise the nation, gas demand will
surge to historical high in the next five years.
To start addressing the issue, late last month, the
government approved Orca Exploration— through its subsidiary PAET—to double
their additional gas supply to 185mmscfd from 90mmcfd.
Mr Hanna said going by government projection to
industrialize the nation stakeholders should start addressing supply issue
before demand overtake it in next five years. “If the industry demand is real
[as per government projections], it is time to discuss for the future,” Mr
Hanna said.
The firm said Dar es Salaam is the regional gas hub and
at the moment suppliers are meeting domestic demand. The region needs are yet
to be touched. And, the country has the potential to become a Liquefied Natural
Gas (LNG) exporter— but investment and contracts extension should start now.
Based on BP’s energy outlook 2017, natural gas
consumption in industry and power will grow at a rate of 1.6 per cent per year
until 2035. This signals a potential future export market for Tanzania’s LNG.
Looking forward, Arthur G. Kanza an expert in oil and gas
said in one of his articles, planners and policy makers must understand the
role of gas as an alternative source of energy.
Quickly implement proper solutions that will leverage its
exploitation, energize the national economy and potentially restore a positive
balance of trade to the benefits of the people of Tanzania.
Source: Daily News TZ