Tanzania’s Energy Sector—the Role and Current Status of Natural Gas in Tanzania
The Government of Tanzania has ambitious plans for increasing access to electricity, improving power reliability, and expanding the use of domestic resources including natural gas and renewable energy. Recent natural gas discoveries in Tanzania and initial investment in transmission infrastructure have made natural gas one of the main anchors of electricity generation. The country is eager to break into the Liquefied Natural Gas (LNG) export market and is currently working on developing plans with international investors for an LNG liquefaction terminal that has the potential to be one of the largest investment projects in Tanzania. The Government of Tanzania (GOT) thus released the National Natural Gas Policy in late 2013. The policy was the basis for the Petroleum Act - 2015 which included all aspects of Natural Gas resources development and management. The act also provided for establishment of Petroleum Upstream Regulatory Authority (PURA) and for downstream the regulatory roles were assigned to Energy and Water Utilities Regulatory Authority (EWURA).
Late last year GOT was able to complete the construction of 532 km (330 miles), 36 inches diameter gas transmission pipe from the gas processing stations to Dar es salaam. GOT is now looking for ways to extend the natural gas transmission pipes to other parts of the Country and neighboring countries. Also the gas distribution network is yet to be developed. The GOT is currently working on putting together competitive bidding framework for various power projects and the first project to be advertised will be the development of 250 – 300MW Natural Gas fired power plant. Additionally, the government of Tanzania is developing a National Gas Utilization Master Plan, which will outline the priorities for natural gas usage, as well as a Local Content Policy for the Tanzanian oil and gas industry.
Tanzania Petroleum Act 2015 - at
Tanzania Electricity Act 2008 – at