Monday, March 3, 2014

Tanzania opens economic cooperation in energy sector with Algeria



Tanzania government yesterday agreed with the government of the people’s democratic Republic of Algeria to facilitate three main economic development projects for the energy sector which the two countries signed in their Memorandum of Understanding (MoU) early December 2013.   Among the major development projects is the establishment of the Liquefied Petroleum Gas (LPG) processing plant for home cooking which the Algerian government has agreed to invest in the country, the Minister for Energy and Minerals Professor Sospeter Muhongo has said. Prof. Muhongo was briefing journalists on Friday last week in Dar es Salaam the outcome of the two day meeting whose aim was to give go ahead of the projects which he signed during his first meeting with the Algerian officials when he visited their country in early December 2013. During the meeting, the two ministers had agreed to promote the energy and mineral sectors in the country whereby the Algerian government would give technical assistance to restructure electricity, minerals, gas and oil sectors in the country. The yesterday’s Dar meeting was attended by Algerian Minister for Energy and Mining Mr. Youcef Yousf and his delegation team who are in the country on the invitation of Professor Muhongo. He said the establishment of the LPG plant in the country which is to take effect after six months from now, will help minimize unnecessary usage of trees for firewood and charcoal to approximately between 40 and 45 percent respectively in the country. Drawing the experience of the project from Algerians, Prof. Muhongo noted that, they have managed to supply LPG for cooking to about 15 million people in their country which has a total population of 38 million people. The second project the Professor noted is that of a joint venture with Tanzania Electric Supply Company (TANESCO) for the rural supply of electricity in the country. He elaborated that, TANESCO will form a joint venture company to work in collaboration with the Algerian technical experts specializing in rural energy sector to help Rural Energy Agency (REA) in facilitating their projects which has entered into the second phase since February this year. The third project Professor Muhongo noted is that of the manufacturing of the Phosphates in the country whose research activities is going on in the country and will take effect in July this year. 



The Minister for Energy and Minerals Professor Sospeter Muhongo 

 “These are the main economic development projects which my ministry will take as they are more helpful to cater for the need of human modern life of the today’s century” he said adding that Tanzanians should expect big changes on energy sector. However, he noted that, the government will continue to negotiate with the Algerian government on other development possibilities such as on how to revamp the sector and will deliberate on other projects soon. He mentioned projects associated with oil and gas exploration in the country would come after as these are more comprehensive for the development of the national economy at large. These he said would be put in discussion on his another visit to Algeria scheduled on 30th June a day when the two governments will meet to sign another MoU for the implementation of the intended projects in place. On his part, the Algerian Minister thanked the government of Tanzania for the cooperation they have shown for the development of the extractive industry and how it is going on in the country. He noted that, his country has committee to have interest for the energy sector  due to its richness in minerals and other underground resources which he said if are invested properly will uplift the life of  Tanzanians. He reiterated the need for his government’s continued education assistance to provide scholarships to young Tanzanians who are going for studies in higher learning institutions. LPG is the most common cooking fuel in many countries for economic reasons, for convenience or because it is the preferred fuel source. Predominantly in Europe and rural parts of many countries, LPG can provide an alternative to electricity and heating oil (kerosene). LPG is most often used where there is no access to piped natural gas. LPG is produced during the oil refining process or is extracted during the natural gas production process. Because of its high calorific value, LPG is ideally suited for use in industrial, commercial, agricultural, horticultural and manufacturing applications. It can also be used for heating, lighting, cooking, powering vehicles and cogeneration. For homes and businesses that are not connected to the natural gas underground mains network, LPG is a cost effective alternative energy source because it is easy to transport and store. Oryx Energies is a market leader in Liquefied Petroleum Gas (LPG) in Tanzania, distributing almost 30,000 MT per year, continues to invest in the expansion of its network. The company store, bottle and distribute LPG from gas terminal and filling plant in Dar es Salaam and actively promote LPG as an alternative to fossil fuel usage (in particular firewood and charcoal).

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