TPDC powers Tanzania's energy future with gas exports and agricultural growth

By Alfred Zacharia
The Tanzania Petroleum Development Corporation (TPDC) is undertaking several major projects to enhance gas distribution within Tanzania, expand gas exports to neighboring countries, and support the agriculture sector through fertilizer production.

Speaking at a workshop on September 13, 2024, Ahmad Massa, Acting Director of Finance and Administration at TPDC said the efforts are part of TPDC’s wider strategy to position Tanzania as a regional energy and agricultural powerhouse.

Domestic Gas Distribution Expansion

In collaboration with the Rural Energy Agency (REA), TPDC has plans to distribute natural gas to the Pwani, Mtwara, and Dar es Salaam regions.

This initiative will improve access to clean and affordable energy across these areas, addressing the rising demand for cooking energy and industrial use.

Additionally, at least 30 licenses have been extended to the private sector to develop Compressed Natural Gas (CNG) stations, further expanding the availability of natural gas for domestic use.

Gas Exports to Neighboring Countries

TPDC is also looking beyond Tanzania’s borders, with agreements already in place to supply natural gas to neighboring countries, including Uganda, Kenya, the Democratic Republic of the Congo (DRC), and Zambia. The gas will be transported via pipelines and through Mini-LNG (Liquefied Natural Gas) systems, which provide a more flexible means of energy export. This development strengthens Tanzania’s position as a key energy provider in East and Southern Africa.

Mr. Massa confirmed that these agreements will help Tanzania become a major supplier of cooking energy to the region. TPDC is working with international partners, such as ROSETTA, Africa 50, and KS Energy, to build mini-LNG plants that will facilitate the transportation of gas to neighboring markets.

Supporting Agriculture with Urea Fertilizer Production

In a significant move for Tanzania’s agriculture sector, TPDC is venturing into fertilizer production.

The corporation, alongside the Tanzania Investment Centre (TIC) and the Tanzania Fertiliser Regulatory Authority (TFRA), has signed an agreement with Indonesia’s ESSA Group to establish a urea fertilizer plant in the Lindi Region.

The plant, valued at Sh3.5 trillion ($1.4 billion), will not only support domestic agriculture but also supply fertilizer to Southern African countries, further diversifying Tanzania’s economic base.

Crude Oil Pipeline from Uganda to Tanga

Massa also reported that the construction of the crude oil pipeline from Uganda to Tanga is progressing steadily, with 30% of the project completed.

This pipeline will enable the transport of crude oil from Uganda’s oil fields to Tanzania’s coastline, playing a critical role in enhancing the country’s energy infrastructure.

Gas Exploration at Ntolia

Looking to the future, TPDC is preparing to begin gas exploration at the Ntolia site, which has an expected production capacity of 60 million cubic feet per day.

Once operational, the gas will be transported to the Madimba wells for distribution within the country and for export.

These comprehensive initiatives reflect TPDC’s dedication to boosting Tanzania’s energy independence, supporting neighboring countries, and reinforcing its presence in both the regional energy and agricultural markets.

Through these projects, Tanzania is set to become a key player in the East and Southern African energy landscape, while also strengthening its agricultural production capabilities. 

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