This is our prediction for the Tanzania oil and gas in 2018. The prediction helps you realize the trend of the Tanzanian oil and gas whether will move in your favor or against you.
It helps you understand where the Tanzania oil and gas is going and help you capitalize opportunities of 2018 in the oil and gas space in Tanzania. Here are predicted trends of Tanzania’s oil and gas market
- Higher gas demand In Tanzania
We have seen the gas demand stabilized in 2017.The increased emphasis of the government on the industrial sector and the substitute of hydropower to natural gas for electric power generation will trigger the gas demand in Tanzania.
The ongoing construction of 240 MW Kinyerezi-2 power station which is expected to be completed in Q3 2018. And the commission of extension of 185 MW Kinyerezi -1 Once fully operational, more gas will be required to generate power from these facilities.
Also, the increasing of factories built in the countries will increase the gas demand in Tanzania.
In 2017 Tanzania Petroleum development corporation (TPDC) finalized the commercial agreement to supply gas to the Dangote Cement plant. Also, TPDC started the delivery of gas From Manzibay gas field to a newly constructed tile factory named Goodwill ceramic.
Also the as the miners ordered to build smelters in the region, this will triple gas demand in Tanzania. We forecast the gas demand will be high in 2018. So for those who want to make fortune in Tanzania’s oil and gas, you can capitalize opportunities through helping to meet the gas demand in Tanzania.
2.A lot of deals in pipelines
A lot has been done in 2017 in the proposed East African Crude Oil Pipeline (EACOP),
Uganda and the United Republic of Tanzania have already signed the Intergovernmental agreement (IGA) for the East Africa Crude Oil pipeline (EACOP) project. And president John P. Magufuli and his counterpart Museveni have laid the foundation of Uganda- Tanzania crude oil pipeline.
The Front-end engineering and design report are in the completion stages.
Once released and Final Investment decision (FID) is reached the construction stage will begin. The project starts in Q1 2018 if all goes into the plan.
This project will create immense opportunities for individuals, companies, communities and host countries So In 2018, keep your eyes close to this prestigious project and you will uncover enormous opportunities to capitalize.
Also, there will be an opportunity for modernizing of existing TAZAMA pipeline (1710 kilometer pipeline that moves oil feedstock from Tanzania to Ndola Zambia) or building a parallel pipeline for moving natural gas
3.Increasing of the upstream activities
You don’t need to be the rocket scientist to recognize that the drop in oil and gas prices has slowed down the upstream oil and gas activities in Tanzania.
The oil prices are still low. But is good for everyone now as it ranges $ 50 to 65$. We see the international oil and gas companies have started to spend money.
This will lead to many drilling programs in Tanzania. Statoil Tanzania hired ocean rig as a drilling contractor for his offshore well that starts in Q1 2018.
4.development program and employment opportunities
Our view is that the year 2018, will be the year of training programs.
And Tanzanian youth will benefit the most from these programs.
As the government of Tanzania wants its citizen to benefit from various oil and gas projects, more training programs will be on board to help Tanzanians benefit from the prestigious oil and gas projects.
Many of these programs will range from the fabrication and welding training.
Our industry is now experience labor shortage. This is the result of hiring a lot in the good times (when prices are high) and laid off many employees when oil prices drop. Many Tanzanians have been downsized since the June 2014. But there are brighter days in 2018. As the companies begin to spend money, Tanzanians will get into oil and gas workplaces
To put together 2018, will be the prosperous year in the oil and gas industry in Tanzania. The midstream (pipeline) segment of the industry will continue to evolve and will be booming.