Demand for natural gas as the main source of energy among
manufacturers and other users in Tanzania continues to rise, according to
Tanzania Petroleum Development Corporation (TPDC).
TPDC says it has received new applications for industrial
use, with at least ten manufacturers expected to switch to natural gas before
the end of this year.
Thirty-seven of the 42 manufacturing companies currently
connected to the natural gas distribution network have started to use this
cheaper source of energy in their operations.
TPDC research officer Denice Byarushengo told The Citizen
that manufacturers that had been connected, but which had not yet began using
gas were Karibu Textile Mills, Lakhani Industries, Bakhressa Food Products,
Bautech Company Ltd and Simba Steel Mills.
Non-manufacturing customers currently using natural gas
include Keko Prison and Movenpick Hotel, both located in Dar es Salaam. About
70 homes in Mikocheni, Dar es Salaam, are also supplied with natural gas, which
they use mainly for cooking and heating.
Mr Byarushengo said several more companies had shown
interest in being supplied with gas.
“TPDC has been talking to potential customers who are
interested in being connected. We are currently negotiating with at least five
industrial customers, who may be connected any time from now.”
Mr Byarushengo added that there could be at least 47
manufacturers using natural gas by the end of this year.
He said plans were afoot to extend natural gas
distribution in Dar es Salaam and several other regions through the Regional
Gas Distribution Project starting this year.
“To start with, the project will cover Dar es Salaam,
Mtwara, Lindi, coast, Dodoma, Morogoro and Tanga regions,” Mr Byarushengo said,
adding that the project would be implemented in collaboration with private
investors.
The biggest challenge in the project, however, will be
securing the financial resources needed for setting up the relevant
infrastructure.
The cost of connecting customers to supply networks
depends on a number of factors, including the distance from the existing gas
supply infrastructure (pipeline) and quantity of gas required.
Another factor is the type of customer (high, medium or
low pressure), which determines the size and material of equipment required for
connection. The use of natural gas in large-scale manufacturing is said to be
more cost-effective than electricity.
Source: asokoinsight (The Citizen)