Future of Tanzania gas industry still uncertain
Germany, Denmark and Pakistan companies are collaborating in developing a fertilizer factory in Lindi region that will cost tentatively $ 3 billion and will employ directly more than 5000 people and has capacity to produce more than 1.3 million tons per year.
The mammoth factory is of its kind to be promoted by investors and ambassadors of the respective countries and is a supermix of Asia and EU coming in the wake of the EU countries opening up after a declining relationship following policy difference with the Fourth republic.
The war on corruption by the Fifth Republic president Dr John Magufuli has convinced the donor and business community that he means business and committed to good governance in the country by ensuring accountability on leadership and population that pay taxes.
President John Magufuli met in Dar es Salaam last week with the Danish ambassador to Tanzania, Einar Jensen, and his German counterpart Egon Kochanke to discuss implementation of the mammoth and very critical project that diversifies natural gas use from energy to vast agriculture input. The development is in line with Big Results Now (BRN) credo.
The president pledged full government support in pushing the project forward and urged the investors to fast-track the construction work.
A State House press release said Dr Magufuli and the two ambassadors also discussed other investment issues, the ongoing war on public service corruption, and plans to improve the country’s ports.
The fertilizer plant is going to basically use the abundant natural gas being found in Lindi and Mtwara regions and a 1000MW electricity generating plant is going to be built to facilitate the factory and others to come including the LNG Plant.
The government plans to begin works on the fertilizer plant this year and the construction will be ready by 2020 and it will be situated in Kilwa District, Lindi Region.
The multinational joint venture with investors from Denmark, Germany and Pakistan is expected to be ready in four years and will be the biggest fertilizer factory in Africa with production capacity of 3,800 tonnes of fertiliser per day and is expected to employ up to more than 5,000 Tanzanians.
The main raw material for the fertilizer is natural gas and on its completion fertilizers which will be used to boost agriculture output in the country, with the surplus to be exported to foreign markets, mainly in South East Asia, the president’s office said.
The country natural gas reserves are increasing whereby by February an additional 2.17 trillion cubic feet (tcf) of natural gas deposits have been discovered in an onshore field at Ruvu 30 kilometers from the commercial capital Dar es Salaam raising its total estimated recoverable natural gas reserves countrywide to more than 57 tcf with most of it offshore.
The development is a testimony of what was said before by the state agency TPDC that in a statement in January said that it had entered into a joint venture deal to build a fertilizer plant with a consortium of German firm Ferrostaal Industrial Projects GmbH, Haldor Topsoe A/S, of Denmark and Fauji Fertilizer Company Ltd of Pakistan. The developers are highly recommended organizations in the petrochemical industries worldwide.
Ferrostaal Topsoe Projects
Ferrostaal Topsoe Projects is a joint venture providing 360° solutions for industrial projects in the petrochemicals, refinery and environmental technology sectors worldwide. The cooperation of Ferrostaal, a leading industrial service provider and Haldor Topose,