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,

Fer­tiliser plant.

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