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Tanzania Poised to Become East Africa’s Energy Powerhouse 

Tanzania is emerging as a dominant player in the East African energy sector, boasting vast natural gas reserves and ambitious plans to become a major exporter of liquefied natural gas (LNG). 

With an estimated 57 trillion cubic feet (tcf) of recoverable gas resources, Tanzania is set to take center stage at the upcoming Invest in African Energy (IAE) 2024 conference, where the country will be seeking partnerships across various stages of the energy sector. 

A key driver of Tanzania’s energy aspirations is the flagship Tanzania LNG project. This project aims to process gas from fields operated by energy giants Equinor, Shell, and ExxonMobil, with a targeted output of 10 million metric tonnes per year. The project awaits the signing of a host government agreement before development can officially begin.

Tanzania has significant potential, with Shell’s Blocks 1 and 4 holding an estimated 16 tcf of gas, while Equinor’s Block 2 boasts discoveries exceeding 20 tcf of gas reserves. 

Beyond its own resources, Tanzania is fostering regional cooperation. A collaborative feasibility study with Uganda is underway to explore the possibility of a pipeline connecting Tanzania’s gas fields to Uganda.

Strategically located on the Indian Ocean, Tanzania has already established itself as a regional leader in Liquefied Petroleum Gas (LPG) distribution through the Kigamboni LPG Terminal.

Tanzania’s commitment to regional energy dominance is further solidified by Taifa Gas, a Tanzanian company, spearheading the construction of a $100 million LPG facility in northern Zambia. 

Tanzania is also looking inwards, venturing into compressed natural gas (CNG) with the launch of its first filling station and conversion center in Dar es Salaam. 

To attract further foreign investment and propel its energy sector forward, Tanzania plans to launch its fifth oil and gas licensing round by June 2024. This round will offer 26 blocks for tender, encompassing both onshore and offshore areas. 

Additionally, Chinese oil giant CNOOC is collaborating with Tanzania Petroleum Development Corporation on exploration efforts, conducting seismic surveys in deepwater blocks near significant gas discoveries.

Tanzania’s abundant natural gas reserves, strategic location, and focus on regional cooperation position the country to become a major energy player in East Africa. The upcoming IAE 2024 conference provides a platform for Tanzania to solidify its position and attract partnerships to unlock its full energy potential.

Source: Anglan Mining

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