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Tanzania: Huge Gas Deposits Found

Discussion in 'Jukwaa la Siasa' started by nngu007, Feb 5, 2012.

  1. nngu007

    nngu007 JF-Expert Member

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    [​IMG]




    BY AL-AMANI MUTARUBUKWA, 28 JANUARY 2012

    [​IMG]

    The Tanzanian government plans is ready to build a pipeline to carry natural gas to Dar es Salaam.
    (Photo Courtesy Flickr/heipmann)

    The Tanzanian government has started working on strategies to prepare the economy to accommodate huge investments in the natural gas sector in anticipation of major commercial discoveries in the next five years.

    The imminent commercial discoveries, whose quantity is yet to be determined, will result into "multi-billion dollar foreign direct investments," according to the minister of Finance and Economic Affairs Mustafa Mkulo.

    He said the discovery will also add significant revenue flows to government coffers and take a big part of the country's export volumes, which will make Tanzania a "gas economy".


    The country has proven natural gas deposits of about 7 trillion cubic feet (cf). It is estimated that Tanzania will confirm around 60 trillion cubic feet of natural gas from the current 7 trillion cf.


    About 3.5 trillion cf of the reserves have already been commercialised with natural gas wells being drilled in Songo Songo and Mnazi Bay gas fields.

    Tanzania's gas reserves border those of Mozambique in the Ruvuma basin where commercial natural gas reserves of about $800b have been discovered by Eni SpA and Anadarko Petroleum Corp.

    To prepare the economy for major gas investments, the government is drafting a natural gas master plan as well as a gas and petroleum revenue management Bill. The Bill will cover the budget treatment of gas revenue.

    Also the tax regime will be reviewed to ensure adequate cover for the gas sector. This will go hand in hand with development of staff expertise in the Tanzania Revenue Authority (TRA) on tax issues associated with the development and exploitation of gas.

    The government is also considering "possible launch of a future generations fund to save a portion of the resource wealth," added Mr Mkulo.

    The government is planning to carry a big project of constructing a gas pipeline from Mnazi Bay in Mtwara to Dar es Salaam to carry fuel for electricity generation purposes. The project would be funded by Exim Bank of China at $1.058b and expected to be operational by the end of 2012.

    Processing plants

    The project includes construction of gas processing plants at Mnazi Bay and at Songosongo, and the pipeline would be technically able to transport a maximum of 700 million standard cubic feet per day, which can generate up to 3,500MW of power.

    "Given the scale of the project, the government will ensure that it has a high rate of economic return, and will share with the IMF the technical and economic evaluation of the project," he said.


    The reports for huge gas deposits have drawn the interest of the world's largest oil and gas exploration companies such as BP, Petrobras, Statoil, Exxon Mobil and Shell.


    Experts say Tanzania will be a focus of drilling this year. Analysts say the amount of investment in gas exploration and infrastructure will run into billions of dollars. Petrobas and Ophir Energy Plc alone are spending close to $2 million per day.


    Tanzanian government last June abolished the Value Added Tax on petroleum products imported to be used as fuel by gas and oil exploration companies.

    The East African deposits found so far are large enough to justify construction of at least eight LNG production trains, according to estimates by the firms.

    Experts say, the gas industry development will be a boost to the predominantly agriculture economy by stimulating other sectors such as supply services and thus rendering a variety of employment to the youth.


    However, they urge the government to be keen to avoid future remorse over blunder contracts like those previously seen in the mining sector.


    Legal frameworks needed

    "It is high time we open up new areas for revenue sources. However, we would like to see the government taking charge as a large player just like South Africa and Norway, whose economies are thriving smoothly on their natural resources," Dr Razack Lokina, a lecturer at University of Dar es Salaam said.

    The Energy and Minerals Parliamentary Committee chairman, Mr January Makamba, said it was important for government to set up legal framework first.


    "We need to develop technical schools and faculties in universities specifically to develop enough skilled personnel for the industry such as gas economists, petroleum engineers, auditors and so forth," Mr Makamba said.


    Mozambique and Tanzania may eventually rival Qatar and Australia as the world's biggest suppliers of liquefied natural gas (LNG).

    The East African deposits found so far are large enough to justify construction of at least eight LNG production trains, according to estimates by the companies.

    Today Qatar has 14 trains operating, while Australia has at least six trains producing and about $250 billion in projects under construction or planned.

    w Experts say, the gas industry development will be a catalyst to the predominantly agriculture economy by stimulating other sectors such as supply services and thus rendering a variety of employment to the youth.



     
  2. K

    KIFILI Member

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    wazanzibar mtatukoma na mafuta yenu ya kujipaka kwenye kikombe!
     
  3. nngu007

    nngu007 JF-Expert Member

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    Mbona hawazungumzii haya Bungeni? Mbona wanaweka siri???
     
  4. Lighondi

    Lighondi JF-Expert Member

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    Wanataka kufanya kama ya Buzwagi kwa mkataba kusainiwa gesti hausi! Utasikia tuu.
     
  5. A

    August JF-Expert Member

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    mbona mmeoleana vitukuu? itakuaje? najisi?
     
  6. simplemind

    simplemind JF-Expert Member

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    Jussa Tibaijuka puzzle solved/ fossil fuel curse.
     
  7. Madela Wa- Madilu

    Madela Wa- Madilu JF-Expert Member

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    Wote walio sign mkataba Guest House ni malaya Wassenge wazoefu waliozoea kujiuza kwa bei poa.
    Nahisi walisaini mkataba huku wakiwa wamekalia mpini wa mzungu.
    Si unajua tena wazungu walivyo Mabasha wazuri??


     
  8. BADILI TABIA

    BADILI TABIA JF-Expert Member

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    italiwa na wachache hiyo
     
  9. Straddler

    Straddler JF-Expert Member

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    Tanzania has 'huge deposits' of everything....But..eer..eer.. Legislators wapo busy kudai nyongeza ya posho na kuuliza uhalali wa JF!!!
    Kweli cha mjinga huliwa na mjanja.
     
  10. Black Rose

    Black Rose JF-Expert Member

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    Kichwa cha mwendawazimu siku zote huchezewa na kila mtu
     
  11. Kinyungu

    Kinyungu JF-Expert Member

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    Nenda Mtwara ukaone jinsi wachaga wanavyomiliki maeneo mengi ya ufukwe ndio utajinyonga....hata Lindi ni hivyo hivyo. Kisiju Wakatolic wana eneo kubwa hadi nakuonea huruma ukija kugundua hilo!
     
  12. fredmlay

    fredmlay JF-Expert Member

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    Wakati utafika pale chama cha majambazi kitakapovuliwa madaraka na nchi kutawaliwa na wazalendo, pia wakati huo kutakuwa na katiba mpya yenye kujali maslahi ya wananchi, hivyo basi tutafaidi utajiri wa nchi yetu hata kama sisi tutakuwa tayari tumeiaga dunia lakini watoto wetu na vijukuu vyetu watafaidi.
     
  13. fredmlay

    fredmlay JF-Expert Member

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    Ukweli ni kwamba dada faiza hakuna wa kumzuia mchagga, wakati nyie mnapambana kuwazuia na kukimbilia ikulu wao wanajenga himaya ya wafanyabiashara na ndio maana kuna maeneo mengi ya nchi yetu yana fursa mbalimbali za kibiashara lakini utakuta waliowahi huko ni wao.
     
  14. M

    MpendaTz JF-Expert Member

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    Mkuu mbona unashangaza? Kwani wachagga siyo watanzania au? Maana kwenye udini naona uko mstari wa mbele na ukabila pia? Loh!
     
  15. m

    mharakati JF-Expert Member

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    miaka 5 ijayo, mtoto wa rais gani atachimba hiyo gas?
     
  16. G

    Gagnija JF-Expert Member

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    Wangetukoma kama hiyo gas ingekuwa mali yetu. Bahati mbaya, mali zetu zote tumeamua kuwagawia kina Sinclair!
     
  17. Kongosho

    Kongosho JF-Expert Member

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    huwa siko optimistic na announcement za mineral deposits au mafuta/gas toka kwa wanasiasa.

    Angekuwa mjiolojia kasema, ningekuwa na opinion tofauti.
     
  18. S

    Sting007 JF-Expert Member

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    Nitashangaa Mapato tutakayoyapata katika Gas yanaenda kulipa Posho, badala ya kuwekeza katika Viwanda.
     
  19. nngu007

    nngu007 JF-Expert Member

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    Kwanini Kauli zako lazima zinaubaguzi Wachagga wanamakosa gani ? wao sio Watanzania?
     
  20. sblandes

    sblandes JF-Expert Member

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    Kisiju nayo ina gas
     
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