TPDC, Rosetta, Africa 50 sign pact for ssLNG project in Tanzania

The Tanzania Petroleum Development Corporation (TPDC), Egypt’s Rosetta Energy Solutions, and investment bank Africa 50 have entered into a preliminary agreement to form a joint venture to develop a $100mn small-scale LNG (ssLNG) project in Tanzania, TPDC said on May 17.

The joint venture company will be owned 30% by TPDC, 44% by Rosetta Energy Solutions, and 26% by Africa 50. The project aims to expand the availability of natural gas across Tanzania, enhancing its usage in various sectors.

James Andilile, Director General of the Energy and Water Services Regulatory Authority (EWURA), said, "This step of signing shows the sincere efforts of the government through TPDC in encouraging the supply of natural gas throughout the country, a goal that we are all working hard to achieve." 

Currently, Tanzania's natural gas network services the regions of Mtwara, Lindi, Pwani, and Dar es Salaam. The project aims to address the growing demand for natural gas in other regions. Andilile highlighted the necessity for increased investment to meet the needs of gas users in industries, homes, and vehicles.

TPDC said that the regions that will benefit immediately upon the project's completion include Morogoro, Dodoma, Mwanza, Shinyanga, Iringa, Mbeya, and Tanga. Infrastructure in these areas will be developed to facilitate the supply and use of natural gas, thereby broadening its availability and benefits.

Tanzania is also making progress on the much-awaited LNG export project in the southern part of the country. This project aims to commercialise significant natural gas discoveries made in the deep offshore basin, further boosting the nation's energy sector. Blocks 1, 2 and 4 in the Mafia Deep Basin off the southeast coast of the country will provide feedstock for the plant.