Four Reasons Why Tanzania is the next East Africa Energy Hub
With the oil and gas (energy) sector in Tanzania undergoing a massive change in structure and worth, new investors and companies will be taking part in growth energy opportunities. As the country builds a reputation as the next energy hub in East Africa, Local and international investors want to put money in the region to leverage the growing energy demand.
Here’s four reasons why Tanzania is the next energy powerhouse in East Africa.
1. The government is quickly working with multinational oil and gas companies in the joint venture
It’s amazing to watch how quickly the government is working with the large super majors in joint ventures into the liquefied natural gas(LNG) projects because they know it is prosperous for its people.
They know that for the country to continue its progress in medicine, social responsibility, science, education, and general quality of life, it must ensure an increasing supply of abundant, reliable, and affordable energy. So LNG project means more economic opportunities for companies, local businesses and the community
2. Tanzania has one of the most extensive supplies of hydrocarbon in East Africa
When I talk about proven natural gas reserves, I mean proven sources of natural gas from which energy can be produced using available technology today. With more than 57 .25 trillion cubic feet (TCF) of recoverable gas, the governance of Tanzania is looking to take advantage of this now.
Look at massive offshore and onshore gas discoveries made in the country. Look at natural gas production in the Songo Song gas field in the Lindi region and the Mnazi Bay gas field in Mtwara. If you add coal and natural gas, by most estimates, Tanzania has an abundant supply of hydrocarbon reserves in East Africa.
3. Tanzania and its Neighbor need a lot of petroleum base fuel and
Unlike Industry critics and activists who want to end up the petroleum-based energy and fossil fuels in general. Tanzania is surrounded by land-locked neighboring who are still rely very much on petroleum-based fuel.
Petroleum products provide fuel to run farm equipment, operate excavators and heavy machinery that builds
Although there is a place that still considers firewood a cutting-edge fuel, as firewood and charcoal have become expensive in East Africa, now our people are switching to liquefied petroleum gas(LPG) for cooking. Why are we switching to LPG? The answer is pretty simple. LPG is cheap, effective, and clean.
Tanzania’s downstream petroleum marketing industry is still not saturated. There are enormous opportunities for further investment to increase the adoption of liquefied petroleum gas(LPG) and other wide range petroleum products across the country, as well as to transit petroleum products to the landlocked neighboring countries( Malawi, Zambia, Uganda, Burundi, Rwanda, and DRC Congo)
4. Excellent relations with its Neighbor
Tanzania has an excellent relationship with its neighbors. The country collaborates with Uganda to build the East African crude oil pipeline project.
Currently, the demand for experienced service providers is very high to support the ongoing production activities in the Songo Songo and Mnazi Bay licenses and the proposed Chikumbi-1 drilling project planned for November 2022 by ARA Petroleum Tanzania Limited (“APT”).
