THE Ministry of Energy and Natural Resources is underway to construct infrastructure network of pipelines at the Dar es Salaam city’s designated centres in preparation for the distribution of the natural gas from Mtwara region to be used for both domestic and industrial usage in the city of Dar es Salaam. The Minister in charge of the Ministry Professor Sospeter Muhongo said recently in Dar es Salaam that the government has issued a total of Sh. 20 billion to accomplish the task which is intended to end towards the end of 2014. The call by Professor Muhongo comes amid President Jakaya Kikwete’s order to his ministry which he issued on the same day when he laid down a foundation stone for the construction of a multi billion project which involves the construction of the 532 Km gas pipelines of Mnazi Bay and Songosongo natural gas processing plant from Mtwara to Dar es Salaam. President Kikwete told members of public who turned up in a sudden heavy downpour to witness the historic event that of the inaugural ceremony of the processing plant which took place at Kinyerezi area in Kinondoni district, Dar es Salaam region. He said that, the ministry should start such a preliminary preparations so that when the 18 month long project between Tanzania and Exim Bank of China is completed and starts operation, the gas should be transported to consumers easily and without instead of waiting until the project is finished. The project which is wholly owned by Tanzania Petroleum Development Corporation (TPDC) is expected to generate 3,600 MW which is approximately 10 percent in excess of the 2015 national target which was set at 2,780 MW for both domestic and industrial usage. According to Professor Muhongo, Tanzania is now producing 1438 MW but upon completion of the project at Kinyerezi the country will enjoy 54.8 percent of electricity from natural gas, 29.8 percent of electricity by heavy oil and 15.4 percent from water which the government spends $ 24 million on purchasing heavy oil to generate electricity annually.
President Jakaya Kikwete being shown a map for the gas pipeline which will be constructed from Mnazi Bay in Mtwara region to Kinyerezi on the outskirts of Dar es Salaam city recently duruing the inauguration of the project.
However, the Minister has highlighted that the project will ensure the reliable supply of electricity help protect the environment from rampant deforestation which currently is on the rise to meet demand in the urban centers whereas at the moment in Dar es Salaam city alone it’s estimated that about 40,000 sacks of charcoal is used everyday. Earlier the project was signed by a team of Tanzanian technocrats from the Ministry of Energy and Minerals, the Attorney General’s office, Ministry of Finance and TPDC itself which was held in Beijing-China in July this year. The signing involves $ 1.2 billion credit agreement (about Sh. 1.92tri). The project aims at increasing transportation capacity of natural gas for power generation as well as industrial and domestic use. The project is jointly implemented by the China Petroleum and Technology Development Company (CPTDC), a unit of China National Petroleum Corp (CNPC) and state-run TPDC. The deal involves construction of a 24 to 36-inch diameter pipeline from Mnazi Bay in Mtwara which will be connected at Somanga, with Songo Songo gas field in Lindi region and then to Dar es Salaam. It is also expected to connect Kiliwani/Nyuni, Mkuranga and offshore natural gas reserves. During the preliminary survey, TPDC had engaged Ardhi University (ARU) to survey the route of the envisaged natural gas pipeline from Mnazi Bay in Mtwara Region to Dar es Salaam via Somanga. With recent discoveries of gas in offshore and onshore wells in southern Tanzania, gas reserves are presently estimated at about 40 trillion cubic feet. Since the country discovered natural gas in 2004, the government has saved over $ 2 million (over Sh. 3bn) from importation of fuel used to run generators. Natural gas generates 416 megawatts to the national grid, accounting for 35 per cent of all the electricity produced in the country. Since the discovery of the Mnazi Bay gas field in 1982 the substantial gas resources in this concession have been effectively “stranded”. Gaining access to the greater markets of Tanzania is expected to allow full production from the Company’s existing and future gas wells.
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