By Mohamed Mahgoub

Natural gas is a reliable energy source used globally to meet growing energy demands. With increased natural gas consumption over the past few years, Liquefied Natural Gas (LNG)  have become a significant component of urban infrastructure.

Tanzania has started exploring for oil and gas over the last 64 years, and they have the first discovery in 1974 in Songo Songo Island and Minari Gulf. After four years of delay, Tanzania will start the Offshore LNG project in the Lindi area in Southeastern Tanzania. Tanzania continues developing its reserves from offshore natural gas, estimated to be 57.54 TCF and 49.5 TCF away from the coast, referred to as the Specified Energy Platform.

The final investment decision (FID) of the long-awaited liquefied natural gas(LNG)project is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID. The LNG will be developed in the Lindi, south of the country.

Construction time will likely be five to six years, suggesting the large-scale project could come on-stream around 2030.

This LNG project shall also secure more jobs for Tanzanian national capacities. It is not an economic perspective but is the social one as well in how to improve the lifestyle of the Tanzanian people from such supergiant projects.

Tanzania shall consider making such a supergiant project as the inspiration of the Tanzanians that their land is the land of the treasures and attractive for global investment.

I expect Tanzania to develop the education curriculum to seize the opportunity of such a super giant national project, more geoscientists, reservoir, production engineers, and more specialization in the LNG industry.

Send Tanzanian oil and gas specialists in cross-posting with Shell and Equinor companies in their HQ to develop the career ladders of the national capacities.

It is also writhed to admit artificial intelligence applications in the LNG as an upswing industry trend in oil and gas.

Why could Tanzanians not mimic Shell and Equinor as the future African operator to establish such LNG industries with the rest of African countries? Another dimension for investing in such an extraordinary project shall be used as an analog.

Before starting the project by Shell and Equinor, Major Oil and Gas companies globally, it is also imperative to conduct due diligence before the project begins.

Due diligence is a common term for investigating and analyzing a business or organization before a transaction is completed. That due diligence such as financial, legal, operational, and tax due diligence shall be implemented that assure the success of this big national project.

Shareholders seek their interests and a lot of money from such LNG projects. Now EU is focusing on natural gas liquefaction (LNG) from Gabon, Tanzania, and Mozambique; therefore, Africa is feeling such an uptick and will provide 220 billion cubic meters of natural gas in 2040.

Europe’s interest in African oil and gas in its plan to diversify the suppliers away from the Russian supplier as a consequence of the Russian-Ukrainian war. African LNG will continue to increase in the rest of 2023 and in the coming years.

China state owned oil company CNOOCK is planning offshore oil and gas exploration with state-owned Tanzania Petroleum Development Corp. as the East African nation seeks to boost the development of its natural resources.

The joint exploration work will be conducted in deep-sea blocks 4/1B and 4/1C held by TPDC, according to Tanzanian Energy Minister January Makamba. The acreage is located near large gas fields discovered by a consortium of international energy companies led by Equinor ASA, Shell Plc and ExxonMobil Corp. that plan to build a $42 billion liquefied natural gas terminal.

“There is also an agreement in the works” between Tanzania and CNOOC to do seismic studies in unassigned blocks before a licensing round next year, Makamba said by phone from China on Wednesday after talks with senior officials at CNOOC.

Tanzania wants to launch an oil and gas licensing round in the first quarter of 2024 to bring in more investors as European nations move to diversify energy sources and cut reliance on Russian gas. The search for hydrocarbons in Africa has grown steadily since a slump in 2020, when just a single drill was operating in African waters.

Tanzanian President Samia Suluhu Hassan revived negotiations with oil majors for the onshore LNG terminal and has introduced economic reforms. Talks wrapped up in May, paving the way for agreements to be signed for the project.

A model production sharing agreement is also being reviewed to draw more activity, the minister said.

The country has recoverable natural gas reserves of more than 57 trillion cubic feet, according to Energy Ministry estimates.

“We believe that Tanzania has more gas, and possibly oil, to be discovered because only 30% of the area with potential for oil and gas resources has been explored so far,” Makamba said.

The electric vehicle(EV)is an open field in Tanzania. With more than two vehicles.

Tanzania has the most significant number of electric vehicles  than all-electric vehicles in East Africa combined.

The Tanzania market is attractive because there are few players and no market leader. Unlike other saturated sectors, Tanzania’s electric vehicle industry has no  competition.

Another reason the sector has generated interest among investors and entrepreneurs is that Tanzania has a large population and size in East Africa.

If you want to enter the market, here are potential opportunities and challenges in this emerging sector.

Business Opportunities.
Opportunities in the electric vehicle sector in Tanzania are abundant.

The most obvious opportunities are importing, distributing, and servicing vehicles.

As more people start adopting electric cars, the most
profitable opportunities will be building electric vehicle charging stations to ensure accessible charging to customers.

Challenges
Like any other sector, challenges are there in the electric vehicle sector.

1. Lack of consumer awareness.
The first issue is that electric vehicles is a new technology in Tanzania, so users, agents, and even policymakers need more awareness.

2.Funding. The other issue is that we don’t have our own funding mechanism.

3.Lack of Skilled human capital. The lack of technicians with specialized training to service electric vehicles is the most significant stumbling block holding back the sector.

What’s Next?

Dear business builder, building new electrical vehicle business takes work. And it takes work to get all answers by yourself. It’s easy to fall in love with your ideas and lunge ahead at full speed without in-depth evaluation.

That’s why many entrepreneurs, investors, and new proje fail. The solution is to conduct due diligence before investing. You will be able to judge your ideas so you can make decisions about whether to fix problems or drop the project and move on to something better

Mozambique, a country located in Southeast Africa, has been making headlines in recent years due to its vast natural gas reserves. However, the nation’s energy market is not solely dependent on fossil fuels. With a growing population and increasing demand for electricity, Mozambique is also exploring the potential of renewable energy sources to diversify its energy mix and ensure a sustainable future.

The country’s renewable energy potential is immense, with solar, wind, hydro, and biomass resources all available in abundance. According to the World Bank, Mozambique has an estimated 23,000 MW of hydropower potential, 2,700 MW of wind power potential, and a solar irradiation of 2,100 kWh/m2/year, which is one of the highest in the region. Additionally, the country’s vast agricultural sector provides ample opportunities for biomass energy production.

The government of Mozambique has recognized the importance of harnessing these renewable energy sources and has set ambitious targets for their development. The National Energy Strategy (2018-2043) aims to increase the share of renewable energy in the country’s energy mix to 50% by 2030 and 100% by 2043. To achieve these goals, the government has introduced various policies and incentives to promote investment in the renewable energy sector.

One such initiative is the Renewable Energy Feed-in Tariff (REFIT) program, which was launched in 2014. The program offers guaranteed, long-term power purchase agreements (PPAs) to renewable energy producers at a fixed tariff, providing a stable revenue stream for investors. The REFIT program covers small-scale renewable energy projects with a capacity of up to 10 MW, including solar, wind, hydro, and biomass.

In addition to the REFIT program, the government has also established the Mozambique Energy Fund (FUNAE) to provide financial support for renewable energy projects. FUNAE offers grants, loans, and guarantees to both public and private sector entities involved in the development of renewable energy projects. The fund prioritizes projects that contribute to rural electrification and energy access for low-income households.

These initiatives have already started to bear fruit, with several renewable energy projects currently underway in Mozambique. One notable example is the Mocuba Solar Power Plant, which commenced operations in 2019. The 40 MW facility is the country’s first large-scale solar power plant and is expected to generate enough electricity to power approximately 175,000 households.

Another promising project is the Metoro Wind Farm, which is currently under development in the Cabo Delgado province. The 120 MW wind farm is expected to be operational by 2023 and will be the country’s first utility-scale wind power project. The project is being developed by a consortium of international and local partners, including the Africa Finance Corporation, Climate Fund Managers, and the Electricity of Mozambique (EDM).

While these projects represent significant progress in Mozambique’s renewable energy sector, there is still much work to be done to fully realize the country’s potential. Challenges such as limited grid infrastructure, lack of technical expertise, and difficulties in securing financing for projects remain barriers to the widespread adoption of renewable energy in Mozambique.

However, with continued government support and increasing interest from international investors, the future of renewable energy in Mozambique looks promising. By harnessing its abundant natural resources and investing in sustainable energy solutions, Mozambique can not only meet its growing energy demands but also contribute to global efforts to combat climate change and promote a greener future.

In Tanzania and Africa, we can only do with the issue of renewable because we have massive potential that we are not harnessing.

In some regions, those unconnected to electric power infrastructure present opportunities for off-grid(renewable) solutions.

Off-the-grid power is absolute, albeit in its infancy in East Africa. Some current opportunities include the following. Viable opportunities exist in solar installations, wind farms, geothermal units, biomass plants, and biofuel generators.

According to experts, solar energy will likely undergo the next significant expansion in energy development in Tanzania and Africa.