Coun­try has 57 tril­lion cu­bic feet of proven nat­u­ral gas re­serves, from which it ex­pects to earn $5 bil­lion an­nu­ally in gas ex­ports

The East African - - BUSINESS - A JOINT RE­PORT

Top Rus­sian air­craft mak­ers of­fer Africa plane deal.

Tan­za­nia starts con­struc­tion of the Stiegler’s Gorge Power Gen­er­a­tion Project in July, hop­ing to more than dou­ble its elec­tric­ity pro­duc­tion ca­pac­ity in the next three years as part of its plans to be­come elec­tric­ity suf­fi­cient and ex­port the sur­plus.

The plant will pro­duce 2,100MW. The dam on the Ru­fiji River in the Selous Game Re­serve will be the largest in the coun­try.

Tan­za­nia re­cently launched the $353.7 mil­lion Kiny­erezi II power plant with an in­stalled ca­pac­ity of 240MW. The plant, on the out­skirts of Dar es Salaam, was built by Ja­panese firms Su­mit­omo Cor­po­ra­tion, Mit­subishi Hi­tachi Power Sys­tems and Toshiba Plant Sys­tems.

En­ergy Min­is­ter Dr Medard Kale­mani said the gov­ern­ment hopes to com­plete two more projects in Kiny­erezi to gen­er­ate 600MW us­ing nat­u­ral gas.

The Stiegler’s Gorge power project an­nounce­ment, how­ever, trig­gered op­po­si­tion from en­vi­ron­men­tal con­ser­va­tion­ists and one leg­is­la­tor.

The lob­bies have main­tained that a power plant in­side the Selous Game Rev­erve, a World Her­itage site, will de­stroy the habi­tat. The con­ser­va­tion­ists fear that Selous could be re­moved from the list of ar­eas listed by the United Na­tions Ed­u­ca­tional and Sci­en­tific Or­gan­i­sa­tion (Unesco) should the Tan­za­nia gov­ern­ment pro­ceed to build a mega-hy­dropower project in­side the park.

“We want the gov­ern­ment to carry out an en­vi­ron­men­tal im­pact as­sess­ment to en­sure that no neg­a­tive im­pact would be ob­served af­ter build­ing the hy­dropower project in­side Selous,” Asuk­ile Ka­juni, a con­ser­va­tion­ist, told The Eastafrican.

Mean­while, the MP for Mtama con­stituency in the gas-rich Lindi re­gion, Nape Nnauye, crit­i­cised the gov­ern­ment’s in­vest­ment in the project at the ex­pense of gas projects.

Mr Nnauye told Par­lia­ment that Tan­za­nia was aban­don­ing gas power gen­er­a­tion af­ter launch­ing the Ru­fiji River one, obliv­i­ous to the in­vest­ment al­ready sunk into nat­u­ral gas ex­plo­ration and drilling in the south.

The Kiny­erezi II plant was funded by Ja­pan’s Su­mit­omo Mit­sui Bank­ing Cor­po­ra­tion and Ja­pan Bank for In­ter­na­tional Co­op­er­a­tion to the tune of $292 mil­lion.

Tan­za­nia met 15 per cent of the cost, amount­ing to $51.6 mil­lion. Ja­pans’ Nip­pon Ex­port and In­vest­ment In­surance cov­ered the po­lit­i­cal and com­mer­cial risks of the loan.

In De­cem­ber, the Kiny­erezi project started re­ceiv­ing gas, al­low­ing for the com­mis­sion­ing of the first two of six gas tur­bines to the na­tional grid. The plant is ex­pected to gen­er­ate al­most 15 per cent of the coun­try’s to­tal ca­pac­ity by the end of this year, fu­elled by nat­u­ral gas piped from Mnazi Bay.

It will add 36 mil­lion stan­dard cu­bic feet (scf) to meet the na­tional daily gas de­mand. Last year, state-owned Tan­za­nia Petroleum De­vel­op­ment Cor­po­ra­tion said that the do­mes­tic de­mand for nat­u­ral gas had more than dou­bled be­tween 2016 and 2017, from a daily de­mand of 145 mil­lion scf in 2016 to 300 mil­lion scf last year.

Tan­za­nia has been bank­ing on the de­vel­op­ment of its vast gas find into elec­tric­ity to in­crease its gen­er­at­ing ca­pac­ity. This will pro­vide it a ded­i­cated power line for the SGR net­work. Power gen­er­a­tion ca­pac­ity is at about 1,500 MW, against a de­mand of 1,352 MW.

Dr Kale­mani said Stiegler’s, the re­main­ing phases of Kiny­erezi and other en­ergy projects in Mt­wara will pro­duce 3,780MW for Tan­za­nia, bring­ing its to­tal in­stalled elec­tric­ity gen­er­a­tion ca­pac­ity to 5,293.3MW. —Re­ported by Al­lan Ollingo and

Apoli­nari Tairo

The shift from wa­ter and diesel power sources to gas for elec­tric­ity has re­sulted in sav­ings of more than $6 bil­lion in the last two years.” Tan­za­nia’s Min­istry of En­ergy

Pic­ture: File

As Tan­za­nia in­creases power out­put, sales of elec­tric­ity gen­er­a­tors will re­duce.

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