Mozambique Gas Summit Reunites Global Industry at Virtual Summit

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Maputo, 5th October 2020 – On 28-29 October 2020, ENH and dmg events will co-host the Mozambique Gas Virtual Summit, held with the support and participation of MIREME and INP.

The virtual summit will feature keynote speeches from H.E. Valige Tauabo, Governor of Cabo Delgado, Estêvão Pale, Chairman & CEO, ENH, Carlos Zacarias, President, INP and Jos Evens, Lead Country Manager, ExxonMobil Mozambique.

“It is our great pleasure to announce that the Mozambique Gas Summit will be held virtually this year. Through the online platform the industry will be able to reunite, debate, and network with one another, enabling leaders from across the international gas community to share ideas and provide key market updates to the rest of the world.”  Said Estêvão Pale, Chairman & CEO, ENH.

The two-day program boasts presentations from the key players in the Mozambique gas community, and will feature discussions on creating a regional gas masterplan, and an update directly from the newly created Mozambican Local Content Task Force on their mandate, plans and priorities for the energy sector moving forward.

Discussions will also be afforded to the status of project development in Mozambique.

The Mozambique LNG and Rovuma LNG projects will both involve major investments into the local business community over the coming years, with the Total-led project expected to invest $2.5 billion of work dedicated for local businesses, whilst creating more than 5000 jobs during the construction phase of the project.

“In spite of the current pandemic, we have seen the largest private investment in Africa, involving an array of lenders and including around 20 banks. This is extremely significant milestone, and a testament to the investability and excitement around projects being developed in Mozambique.” said Nina Febo, Project Manager, Mozambique Gas Virtual Summit.

The Virtual Summit will offer unparalleled access to Mozambique’s key energy sector decision makers, whereby attendees will be able to network with them virtually, gain access to exclusive content and even visit trade booths in the virtual exhibition.

“We’re creating a platform to help re-connect the Mozambique energy community. The Mozambique Gas Virtual Summit has some extremely innovative features, including a match-making algorithm that will suggest companies for you to meet with based on your business needs. We have seen a real renewed appetite from the local and regional community to reconnect following an extended period of restrictions and the virtual platform will provide this opportunity to meet with existing clients, whilst also seeking out new collaborative ventures.” Added Ms. Febo.

dmg events, along with its partner ENH, invites all key stakeholders seeking to collaborate and access business opportunities in Mozambique and the region to join the Mozambique Gas Virtual Summit, which will reconvene all of the key players from across the Mozambican energy value chain. Attendees from across the world will have the opportunity to network and host private meetings, in addition to resuming collaborative discussions at a critical point for the industry and Mozambique’s gas sector’s future.

-ENDS-

For further information, do visit www.mozambique-gas-summit.com.

About the organiser: 

dmg events  
dmg events leading organiser of live, hybrid and virtual events and a publisher of trade magazines.
We aim to keep businesses informed and connect them with relevant communities to create vibrant marketplaces and to accelerate their business across multiple platforms.
dmg events organises more than 80 events across 25 countries, attracting over 425,000 attendees and delegates every year.  The company’s portfolio of products includes many industry leading events such as ADIPEC and Gastech energy events.
Founded in 1989, the company is headquartered in Dubai, UAE, and is a wholly owned subsidiary of the Daily Mail and General Trust plc (DMGT, www.dmgt.com), one of the largest media companies in the United Kingdom.

For further information, please contact:

Roshan Jan-Mahomed
Roshanjanmahomed@dmgevents.com
07593 441 504

Have you heard What are Trending Business Opportunities in Tanzania Right Now?

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Can I be painfully honest with you?

No, not thank-God-he-told-me kind of honesty, where someone points out a gutter in front of you in the middle of the night.

It’s brutal, bitter, and downright ugly.

Have you noticed it? In your city, boutiques are empty, restaurants are closing up, and even the streets are getting emptier by the day.

Yet, economic activities are still going on.

But what you will also notice, if you look hard and well, is that some businesses are also starting up.

To be specific, here are trending business opportunities:

  1. Provide goods and services to oil and gas companies in East African crude oil pipeline( EACOP)Projects.

The implementation of key infrastructure projects in the oil and gas is boosting the demand for high-quality local suppliers of goods and services.

On the horizon, the East African Crude Oil Pipeline project which will be constructed to transport crude oil from the oil fields in Hoima, Uganda to Tanga port in Tanzania holds the promise of thousands new jobs and services 

And you know why?

People are thinking of ways to tap into the opportunities that abound in the project. Maybe you have been thinking the same, too.

Why not? When it made newspaper headlines, we were told that:

The host countries(Uganda and Tanzania) have signed host government agreement (HGA)

The pipeline will cost $3.5 Billion USD, increase direct foreign investment by 60% in Uganda and Tanzania, and facilitate oil and gas development in the region.

The project is expected to start March on 2021

“Wow!” I hear you say. “Oil and gas here I come.”

But how?

How do you tap into the opportunities? Do you just sit back and hope you get called to participate?

 Or you start knocking on office doors of oil and gas companies’ managers and hope they have a stake in the EACOP project?

 This is the perfect time to position yourself to win the competition and meeting the growing demand for goods and services in the project 

2.Start Petrol Station business 

Petrol stations line every street corner. More people are consuming more fuel.

Consider this:

· People are buying more cars. Look at all the cars on the highway—thousands of them—they buy fuel from petrol stations.

· There is still a power-failure problem in the country, so, people depend on generators—both diesel and petrol powered. They have to buy fuel from petrol stations.

· Aside from that, we’re no longer in the Stone Age where people cook with logs of wood. Now, they simply buy kerosene from a petrol station for their cooking. Those who don’t use kerosene use cooking gas, which they buy from petrol stations.

There’s an available market to sell to in all the above. Besides selling petrol, diesel, kerosene, cooking gas, and engine oil, those petrol stations:

· Offer car washing services.

· Offer car repair services.

· Have a restaurant and, in some cases, a bar.

· Have a shopping mall.

· Even rent out vacant offices to companies like DSTV, telecommunication companies, etc.

So this is your opportunity to start a petrol station.

3.Start LP Gas (Cooking Gas) retailing Business: 

There has been a substantial rise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019. Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to an increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with our effective marketing and supply strategies, building close client relationships as well as providing complementary services, the newly-established LP Gas retailer can still be profitable and assured of recovering its entire investment.

4.Set up Industrial Training Institution:

The massive discoveries of massive natural gas in Tanzania, along with the resulting investments in infrastructure such as ports, oil and gas pipelines, and renewable energy projects, have created a significant demand for local workers in Tanzania. These developments present an opportunity for economic growth and employment boost across the region. 

The sad reality is that this opportunity is hampered by a lack of availability of enough skills among the local population. The limited availability of technical vocational education and training (TVET) that is sufficiently matched to industry requirements causes the skills gap to grow at the local level.

Start industrial training and development business and transforming the local population from just followers to be world-class professionals and industry leaders is key to support continued economic development in Tanzania.

Bonus

5.Start Rice and Maize Flour Processing Plants

Maize flour(popularly Sembe and Dona) is a staple food for a large proportion of the population in Tanzania including poor and common men who use it regularly. With Tanzania’s, rapidly growing population means more demand for affordable staple foods. The maize milling plant business is a profitable business opportunity for entrepreneurs.

I hope this help.

At Tanzania Petroleum, we are committed to helping people make their entrepreneurship dreams come true in this most valuable oil and gas industry in Tanzania.

How to Know If Your Land/Location Is Profitable For Starting Petrol Station Business In Tanzania

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If you want to build a petrol station, location is a key determinant whether your petrol station business will fail or succeed.

If you make a mistake in location, the business is already a huge mistake.

For your petrol station business to be set up, you need to set up in the best location in your target city. The biggest mistake people make is this: they just purchase land and rush into building petrol station without doing a little homework.

They spend a lot of money, time and effort building a petrol station only to find that the station is selling a little volume from the market in trading areas.

The petrol station business should have the advantage of being in an easily accessible and highly visible location.

No matter how good your marketing strategies are, if you build a petrol station in a non-strategic location, you will make little sales.

If you want to see your petrol selling huge volume of fuel in the marketplace, you need to evaluate the marketability of your area. Before you take the next big step of purchasing or build a petrol station, you should evaluate the marketability of your site.

You need to determine whether there is a market for selling petroleum products as well as who the target customers are. You need to determine who your competitors are and how you will stand out in this competitive business. You need to determine how much volume the station is expected to extract in the trading area.

Read also:7 Steps Involved in Starting a Profitable Petrol Station Business in Tanzania

Before you pour your blood, sweat and tears as well as a lot of time and resources into building a petrol station, you should evaluate your location and do a little homework to know whether your location will sell before you go into the trouble of building petrol station.

You will need to answer “Yes” to this question: “Will a petrol station sell in this area?”

It’s just a matter of finding answer to these questions:

  • What are future development plans in your area? And what are the economic activities that may attract traffic?
  • How much volume of diesel, petrol and kerosene the station is expected to sell in trading areas.
  • Traffic count or estimated quantity of cars and vehicle per days.
  • What are the competitive advantages of nearby petrol stations?
  • What are the land parameters to comply with and the legal requirement?

You should already have much of this information if you have been doing a solid home work. Evaluate your land. If your evaluation reveals that your location will not sell or will not sell well enough, let it go or find a way to make your location profitable.

You can outsource this task to a consultant like us to evaluate the marketability of your area and compile a report that will help you whether your petrol station will sell or not.

I hope this help.

At Tanzania Petroleum, we are committed to helping people make their entrepreneurship dreams come true in this most valuable oil and gas industry in Tanzania.

7 Steps Involved in Starting a Profitable Petrol Station Business in Tanzania

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The growth demand for fuel due to the county’s economic growth and expansion of transportation sector create ample opportunities for the petrol station investments in Tanzania.

 

Starting a petrol station in Tanzania requires careful planning and adherence to regulatory requirements. Here are some steps to consider:

1. Research and Planning:
– Conduct market research to assess the demand for fuel in your chosen location.
– Identify potential sites that are accessible, have sufficient traffic, and meet safety requirements.
– Analyze the competition and their pricing strategies.
– Estimate the initial investment and ongoing operating costs.

2. Legal and Regulatory Requirements:
– Obtain the necessary licenses and permits from the relevant government authorities, such as the Energy and Water Utilities Regulatory Authority (EWURA).
– Comply with safety and environmental regulations set by EWURA and other relevant agencies.
– Register your business as a company or partnership with the Business Registration and Licensing Agency (BRELA).

3. Secure Financing:
– Develop a comprehensive business plan to present to potential investors or lenders.
– Explore financing options such as loans from banks or financial institutions or seeking out private investors.

4. Land Acquisition and Construction:
– Identify and acquire suitable land for your petrol station, ensuring it meets all legal and safety requirements.
– Design and construct a fuel station layout that includes fuel pumps, tanks, convenience store, restrooms, and other necessary facilities.
– Seek out experienced contractors and professionals to handle the construction process.

5. Equipment and Supplies:
– Purchase high-quality fuel dispensers, tanks, safety equipment, and other necessary hardware from reputable suppliers.
– Establish relationships with fuel suppliers to ensure a reliable and consistent fuel supply.

6. Staff Hiring and Training:
– Determine the required staffing needs, such as fuel attendants, cashiers, and security personnel.
– Advertise and conduct interviews to hire qualified employees.
– Provide training on safety protocols, customer service, and daily operational procedures.

7. Marketing and Operations:
– Develop a marketing strategy to attract customers, such as offering competitive pricing, loyalty programs, or various payment options.
– Install clear signage to promote your petrol station.
– Establish partnerships with local businesses to attract more customers.
– Implement efficient inventory management systems and maintain proper records for fuel stock and sales.

Remember, it is crucial to consult with professionals, such as legal advisors, financial advisors, and experienced petrol station operators, to ensure compliance with the specific requirements and regulations in Tanzania.

A Sample Business Plan for Starting an LP Gas (Cooking Gas) Distribution/Wholesale and Retailing Business in Tanzania: A Business Plan for one Quick Gas Limited

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Our sample LPG  business plan helps business owners and entrepreneurs like you create a business plan in less time for investor funding, bank loan, compliance with government authorities and for self-learning. 

EXECUTIVE SUMMARY

Overview

There has been a substantial raise in the consumption of liquefied petroleum gas (LPG) in the last ten years. The annual LPG consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019. Furthermore, with continued economic development in Tanzania as well as increasing awareness in the use of LPG as the best alternative to firewood and charcoal, the consumption of LPG will grow to a significantly high level in both urban and rural areas. And with the Tanzanian government’s ambition to scale up the use of LPG across the nation, it will lead to increase in LP Gas demand and supply to hotels, homes, factories, boarding schools, army camps, mines as well as petrol stations.

Although competition in the LP Cooking gas business has increased over the past few years in Tanzania, with our effective marketing and supply strategies, building close client relationship as well as providing complementary services, the newly-established LP Gas retailer like Quick Gas can still be profitable and assured of recovering its entire investment.

Customer Problem

Our business aims to solve the problem of limited access to clean and affordable energy for cooking and  purposes in Tanzanian households. Many households rely on traditional fuels such as firewood and charcoal, which are not only expensive but also harmful to health and the environment.

The Company

Quick Gas Limited is a newly-established LPG distributor/retailer in the Kasulu District of the Kigoma Region in Tanzania. Our mission is to provide clean and affordable energy solutions to address the problem of limited access to such resources in Tanzanian households.

Products and Services:

Our products and services include:

  • LP Gas (cooking gas) in 6kg, 15kg, 30kg and many other volumes.
  • LPG cylinders of various sizes, colour and design.
  • Cookers and fittings such as pipes, gauges etc.
  • Site installation services.
  • Home delivery of products and services.

Customers/clients:

Quick Gas will deliver LP Gas to household, industrial and commercial customers in Kasulu District in the Kigoma Region and will expand to other location of the city after three years of services.

Competition

Quick Gas Limited will have both direct and indirect competitors but our competitive advantage is that majority of the population will opt for LP Gas rather than buy firewood or charcoal, and there are more customers to go round.

Financial Considerations

The financial projection of this business plan is attached as an spreadsheet file.

Objectives

The underlying objectives of QUICK GAS limited is stated as follows:

  • To be known as a top quality, safe and reliable LP Gas delivery service provider in Tanzania.
  • To achieve and preserve a high gross profit margin.
  • To expand to other location within the city after three years of service in the Kasulu district of Kigoma Region.
  • To achieve 25% of the market share within the first three years.
Form of Business: Limited Liability Company
State of Business: Start-up (new business)
Managing Director: Lawrence Mambo
Business Development Consultant: Hussein A. Boffu
Opening Hours: Mondays to Saturdays: 7 AM – 7 PM.

Sundays: 12 PM – 6 PM

Get the Full Version Now

In the full version, you will have access to the following table of contents:

EXECUTIVE SUMMARY

  • Overview
  • The Company
  • Products and Services
  • Customers/clients

BUSINESS DESCRIPTION

  • Problem Statement
  • Mission
  • Vision
  • Objectives
  • Our Values
  • Keys to Success

PRODUCTS AND SERVICES

MANAGEMENT TEAM

MARKET ANALYSIS AND TRENDS

  • Market Research
  • LP Gas Import in Tanzania
  • LP Gas Industry Trends
  • LP Gas Industry Outlook
  • Our Target Market
  • Core needs and pain points
  • Behavior Patterns

COMPETITOR ANALYSIS

  • Direct Competition
  • Indirect Competition
  • Competitive Advantage

SALES AND MARKETING PLAN

OPERATIONAL PLAN

  • Opening Days/Hours
  • Location
  • Setup Cost
  • Machinery/Equipment Requirement

SWOT Analysis

PEST Analysis

Risks and Mitigation

  • Identified Risks
  • Mitigation Strategies

FINANCIAL PLAN AND PROJECTION

 

For the complete business plan for starting and running a LP Cooking gas business in Tanzania, make a payment of $200 (or its equivalent in Tanzanian Shillings TZS 400,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com. The moment we receive your email or SMS and we confirm your payment, the plan will be delivered to your email address (in docx) within fifteen minutes.

You can then download it and read it on your smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Feasibility Analysis on How to Start Your Own Profitable Wholesale Petroleum Products Business in Tanzania

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The current market of petroleum products in Tanzania is $1.77 billion, growing at the annual rate of 15 percent.

With continued economic activities in Tanzania, this growth rate is likely to accelerate in the near term.

Although there has been series of natural gas discoveries in the past 10 years and small gas production in Tanzania, the demand for energy is growing fast and this demand can’t be covered by liquefied natural gas (LNG), new natural gas field development or alternative energy initiatives.

The best way to meet Tanzania’s huge energy demand is the combination of these sources of energy, including petroleum products.

So, no matter how much is imported, more is needed to meet the ever-growing energy need in the country.

The wholesale petroleum products business is so lucrative that aspiring entrepreneurs who are passionate about benefiting from petroleum product wholesaling can jump in to sell to an already available market.

The best part of selling petroleum products in Tanzania is that you are not cajoling people to buy products they don’t intend to buy like multi-level marketers do.

You are serving people who can’t do without your products.

What is Petroleum Products Wholesaling and How does it Work?

Now that you know that there is a huge and profitable market for petroleum products in Tanzania with endless potential growth, let us have a look at what petroleum products wholesaling business is and how it works in Tanzania.

The wholesale petroleum business is nothing new in Tanzania.

Well-know oil brands like Total, Puma Energy (previously Oil BP) etc. are all petroleum wholesalers (popularly known as oil marketing companies). These companies are all foreign.

Over the last few years, several great brands that are owned by Tanzanians started to emerge in the market. You already know brand names like Lake Oil , Afro Oil, and many more.

These companies engage in importing, storing and trading petroleum products to commercial consumers as well as to end users through their retail petrol stations outlet. There is a large upfront investment needed to get tanks, trucks, training, certification and products if you pick to follow these route.

However, there is an exiting and profitable market for independent petroleum wholesalers who operate without their own specific retail brand name.

These wholesalers sell petroleum products to transport companies, mines, farmers, colleges and schools, factories and to some unbranded or privately-owned petrol stations. Some independent wholesalers trade petroleum products to land-locked countries such as Burundi, DRC Congo, Rwanda and Uganda.

The best part of this is that Tanzanians can now actively participate and reap rewards from petroleum products wholesaling. As an independent petroleum wholesaler, your task is to go out and look for customers. Once you get an order, you will relay the order to suppliers and arrange delivery from the supplier’s depot to customers.

I would strongly recommend you target large customers who have the financial muscle to pay you in advance before the delivery.

Also, you have to negotiate with suppliers.

Profit Analysis (How much does independent petroleum wholesaler make in Tanzania?)

There is no limit to the amount of money that you can make in the wholesale petroleum business. It depends on your efforts, commitment and your marketing skills or creativity.

Since the wholesale petroleum products price is regulated and like any other commodity, petroleum products price tend to fluctuate regularly due to exchange rates, international benchmarking or fluctuating oil price in the global market.

Therefore, this tends to affect the profit margin in this business.

But a realistic profit margin that independent petroleum wholesalers make is TZS 60 to 67 per liter.

That means for only for only 100,000 liter per month, a petroleum wholesaler will be able to earn around TZS 60 x 100,000 liters = TZS 6, 000,0000.

Keep in mind that the transportation cost (distribution cost) are added in the price.

How to Become a Petroleum Products Wholesaler in Tanzania

Business Plan:

The wholesaler petroleum products business needs strategic planning to start.

To be completely transparent with you, most Tanzanians do not understand the value of a business plan. They only request for business plan when they want bank loan or they engage in business competition.

While it is vital to prepare a business plan before you start business in market, the emphasis of business plan is essentially as a plan to enter the oil and gas industry.

As an independent petroleum wholesaler, you will compete with wholesale petroleum companies that have huge financial capacity and highly specialized and technical staff.

Your wholesale petroleum business plan will act as a roadmap to reach your business objectives and give you a clear picture on how to compete well in the market.

Register your company:

Get your limited liability company registered with the Business Registration and Licensing Agency (BRELA).

Get EWURA Approval:

The Energy Water and Utilities Regulatory Authority (EWURA) is the government agency that regulates the downstream petroleum product sub-sector in Tanzania. You have to get a wholesale petroleum license that allows you to sell petroleum products to bulk customers.

Keys to Success

Merging:

To ensure a good profit margin, pick a supplier who will offer you high-quality products at competitive rates

Marketing Skills:

As I mentioned earlier, you compete with petroleum wholesalers who have huge financial muscles and talented technical team.

So, employing the best marketing strategies will help you to compete well in this industry.

A Sample Business Plan for Establishing High Performance Oil and Gas Exploration and Production Companies in Tanzania and East Africa

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This sample oil and gas exploration and production business plan can be used for grant applications, bank loans, proposal writing, business concept notes and as a roadmap to achieve your business objectives.

Also, you crucially need the guidance of a specialist petroleum industry consultant in Tanzania, such as Hussein Boffu, to help you in implementing this business plan.

Executive Summary

In recent years, due to economic recovery, Tanzania has registered significant growth in the demand for gas. Moreover, increased gas-to-power initiatives, increased industrialization and continued economic activities in the region require growth in gas-delivered volume for supporting economic expansion. Glass supply is so inadequate that current small gas-producing fields can’t cover the growth demand for all power consumers and industrial users. Moreover, the approach used to meet the increased gas demand elsewhere in the world is to encourage and attracting exploration and production companies through bidding around.

Rich Energy Exploration and Production Tanzania Limited is positioned to capitalize on these growing opportunities, that the Tanzanian oil and gas market hold, by playing vital roles in developing a new source of gas supply to ensure the availability of enough gas for power generation, industrial and households use.

The founding team has over 60 years’ experience in aspects of the energy industry including engineering, managerial, researching and marketing. The company will be established on 29th October 2020 to explore, develop and produce natural gas for industrial users and power stations in Tanzania.

Rich Energy Exploration and Production Tanzania Limited expects that approximately 40.4 billion in gas sales will be created annually.

Our vision

To facilitate industrial and commercial development, job creation, and economic growth through development of indigenous natural gas sector.

The mission

Our mission is to be the top performer in our industry in order to enhance the value of our shareholders. We will utilize the team work of our people and appropriate technology to provide our customers with high-quality products competitive in price.

Objectives

  • To provide competitive total shareholders’ return in top 25 percent in the industry.
  • Maintain our financial flexibility and consistently fund our capital program.
  • Achieve and maintain the highest standards of safety, ethics, total quality and environmental performance in all operations.
  • Improve competitive performance through a more effective utilization of technology.
  • Build employee commitment and loyalty through communication and creation of opportunities.
  • Satisfy customer requirement through continuous quality improvement.
  • Operate our business in efficient, low cost, high quality manner, maintaining high standards of ethics, safety and environment compliance.

Key to Success

  • Add commercial reserves by drilling at low cost reserves relative to competition.
  • Produce oil and gas resources at high margin relative to the competition.
  • Add commercial reserves by acquiring assets at low cost relative to the competition.

The Management

Chief Executive Officer: Adam Smith has over 30 years’ experience with specialized technical, operational and managerial abilities focused on critical aspect of the energy sector industry including engineering, operating, research and marketing abilities having worked at the managing director level with Shell, Equinor etc.

Financial Engineer: Chriss Mkema Innocent is a financial engineer with deep operating experience, great negotiation skills and a knack for numbers and deal-making.

Operation Manager: Abdallah Igengu is a reservoir and petroleum engineer with 32 years’ experience in the upstream oil and gas industry in different countries. He has a Bachelor of Science in Petroleum Engineering and an MBA from Madonna University, USA.

Legal Advisor: Anganile Anyeliswe.

Petroleum Consultant: Hussein Boffu

Board of Directors: Rich Energy Exploration and Production Tanzania Limited is controlled through its Board of Directors. The board will consist four members and comprises non-executive directors. The Board’s main roles are to create value for shareholders, to provide entrepreneurial leadership to the Group, to approve the Group’s strategic objectives and to ensure that the necessary financial and other resources are made available to enable the Group to meet its objectives.

Products and Services

Rich Energy Exploration and Production Tanzania Limited will be selling natural gas to industrial customers such as factories, hotels and power generation customers such power stations and government agencies including state-owned utility company, TANESCO, and state-owned national oil company, Tanzania Petroleum Development Corporation (TPDC).

Market Analysis

Tanzania is arguably the most exciting oil exploration region in the world. But it still is the most untapped region. As at the time of this writing, exploration activities confirmed reserves of 57.54 trillion cubic feet of natural gas in Tanzania, and more than 441 trillion cubic feet of natural gas are still trapped underground, solely in the coastal region, according to the US Geological Survey. So, discoveries might be forthcoming. This is why giants like Royal Dutch Shell, Equinor, Total and Pavilion Energy are buzzing around Tanzania like bees do to honey. The big boys won’t lift a finger if there’s no chance big profits could be made. Furthermore, with continued economic growth in Tanzania will come an increased gas demand. These signs indicate that the future for the oil and gas exploration activity is really bright.

Trends

There has been a change in the dynamic of oil and gas exploration and development in Tanzania, driven by the 2014-2016 oil price slump which reflects the global oil and gas industry downturn. The region has also seen takeovers and mergers amongst operating companies. Most noticeable of these were that Royal Dutch Shell acquired BG Group for US $50 million (the takeover gave Shell 60% of BG’s block 1 and block 4 offshore Tanzania in February 2016) and the Indonesian company, Medco Energi’s $539m acquisition of Ophir Energy in May 2019.

Competition

There have been significant onshore and offshore discoveries of gas in the last ten years and it is expected that the development of these discoveries will increase competition in the future.

Pan African Energy Tanzania (PAET), a subsidiary of Orca Exploration Group Inc. (“Orca”), operator of the Songo Songo gas field located in the southern part of Tanzania, has been producing gas in Tanzania since 2004.

Mnazi Bay field started producing gas in 2015 operated by Pertamina-owned Maurel & Prom partnered with Alberta-based Wentworth Resources and the state-owned oil company Tanzania Petroleum Development Corporation have a stake in the field.

Get the Complete Business Plan

Make a payment of US $200 through Tgo pesa, M-pesa to any of these numbers

  1. +255768183677
  2. +255655376543

Once your payment is done, send an SMS to +255768183677or +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com The moment we receive your email or SMS, and we confirm your payment, the eBook will be delivered to your email address (in PDF format) within ten minutes. You can then download it and read it on your Smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Exploring Profitable Paths: Six LPG Business Opportunities in Tanzania

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When I was a kid, I was told that the source of energy was firewood. We used it to cook and do everything.
By the time we got used to firewood, the government announced that gas was now _the_ clean source of cooking energy.
It was a bit tough for many Tanzanians to embrace this new source of cooking energy.

Quite a number of people in Tanzania feared that LPG was highly explosive and could endanger their home. Also, it was seen as a luxury reserved for the rich.


The awareness of the social benefits of using LPG was low among the beneficiaries. So, the annual consumption of LP gas in Tanzania was only 5,500MT in 2005.


Entering into the LPG business in Tanzania at those times was unprofitable because the market demand for cooking with LP gas was too small and Tanzanians were unwilling to pay for it.


With regular awareness campaigns now, there has been a steady increase in the number of households using LPG. Today, most people in Tanzania are aware of the LPG as a clean and healthy source of domestic cooking energy, and they are moving away from charcoal and firewood.


The annual LP gas consumption in Tanzania has grown from 5,500 metric tonnes in 2005 to 145,800 metric tonnes in 2019.


With this steady upward movement of LPG consumption in Tanzania, investing in the LPG business can be one of the best business ideas to pursue in Tanzania right now. Why? Because the LPG has become a constant domestic requirement for households (families), lodges, restaurants, schools, colleges, hotels and industries.

Six LPG Business Opportunities in Tanzania

 

There are several profitable business opportunities in Tanzania’s LPG sector. Here are a ideas:

1. LPG Distribution: Start a business that focuses on distributing LPG cylinders and related equipment to households, businesses, and industries. You can establish a network of distribution points and build partnerships with LPG suppliers.

2. LPG Retail: Set up retail outlets where customers can buy LPG cylinders, accessories, and cooking appliances. This can be done in urban areas or in areas with limited LPG access. Consider offering additional services like refilling, maintenance, and repairs.

3. LPG Conversion: Offer conversion services for vehicles from traditional fuels to LPG. This could target taxis, buses, and other commercial vehicles. As LPG is known for being more environmentally friendly and cost-effective, there is potential demand for such services.

4. LPG Infrastructure Development: Invest in infrastructure development, such as building LPG filling stations and storage facilities. This can supply LPG to retailers, industries, and large-scale consumers like hotels and restaurants.

5. LPG Cylinder Manufacturing/Refurbishment: Establish a facility for manufacturing or refurbishing LPG cylinders. This can help meet the growing demand for cylinders or provide cost-effective solutions for reusing and maintaining existing ones.

6. LPG Safety and Training: Start a business focused on providing safety training and equipment to LPG users. This can include educating customers on safe handling, storage, and usage of LPG, as well as supplying safety accessories like regulators and gas detectors.

Remember, before starting any business, it is essential to conduct thorough market research, understand the regulatory framework, and assess the competition in the LPG sector in Tanzania.

A complete Small Investor’s Guide on How to Set Up Mini Fuel Station With Two Pumps Anywhere in Tanzania’s Rural Areas With Only TZS 55 Million

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he demand for retailing petroleum products – including diesel, petrol and kerosene – in rural areas and small towns in Tanzania is growing at a fast rate.

The growing demand of retail petrol stations in those areas is driven by increasing economic and farming activities.

The farmers constantly require diesel in huge quantities in order to operate their windmill to pump water for their livestock as well as crops, and to operate their tractors.

There is a proliferation of trucks that used to transport crops in rural areas that rely on diesel or petrol. The fishers constantly require fuel to power their fishing boats.

Furthermore, due to limited access to electricity, farmers install generators to operate their windmill to pump water for their crops or to power their homes. Also, locals in those areas rely on kerosene to light up their homes.

Most important is the emerging mode of transportation. There are tricycles – or boda-boda, as everyone calls it – and this has increased the demand for retail petrol stations in rural areas and small towns in Tanzania.

Currently, most rural areas and small towns have good vehicle traffic/volume but the surprising truth is that for decades fewer petrol stations have been set up there.

It is estimated that, in some small towns, locals, farmers and vehicle owners have to travel more than 100 kilometers to the nearby town’s petrol stations to get access to fuel.

But with new facilities, roads and factories being built in rural areas, setting up a petrol station over there can get you a high return on investment.

Related Project: A Sample Business Plan for Starting and Running A Petrol Station in Tanzania

In reality, there is a great demand of petrol station in rural areas and small towns. Even the Energy, Water and Utilities Regulatory Authority (EWURA) has lessened the requirements for starting petrol stations in rural areas to reduce investment cost, start-up capital and project cost.

The aim is to encourage investors to set up petrol stations and meet the huge demand of fuel in rural areas.

Retail Petrol Station Industry Outlook

Although competition has increased over the past few years, fuel sales continue to increase annually. The most intense competition is in larger urban centers, because most entrepreneurs are looking to have fuel stations in the city centers and more bustling urban parts of Tanzania. This leaves opportunity for independents in smaller rural settings and small towns.

So, setting up your small petrol station in up-country areas and small towns is a successful model for entrepreneurs looking to benefits from the fuel station business in Tanzania.

Introducing………………

A Detailed Feasibility and Project Report on Starting a Profitable Small Petrol Station with Two Pumps in the Rural Areas and Small Towns in Tanzania

Get the Full Version Now

In the full report you will learn the following:

  • What is the structure of a small petrol station business?
  • What is the petrol station industry size and growth?
  • What is the outlook of petrol station industry?
  • What are the licenses, permits and certification required for setting up small petrol stations in rural areas?
  • What is the working capital required for setting small petrol station in Tanzania?
  • What are the built-up requirements for small petrol stations in Tanzania?
  • What is the total project cost for setting up a small petrol station business in Tanzania? (This includes the breakdown of such start-up capital and project cost for setting up petrol stations?)
  • What are the items of equipment and machinery required for setting up a small petrol station business? And what are their prices and where can you buy them in Tanzania?
  • What is the minimal size of land required for setting up a small petrol station with only two pumps?
  • What is the profit margin and income for a small petrol station business?
  • What are the requirements as regards utilities, electricity, water, salaries and overheads for setting up a petrol station business?
  • What are SWOT analysis for setting up small scale petrol station in rural areas and small towns in Tanzania?
  • What are the personnel (manpower) requirements for starting a small petrol station business?
  • What are the market opportunities and market assessment for setting up a small petrol station business?
  • What are the petrol station industry trends?
  • Who are the suppliers of petroleum products/fuel, machines and equipment for setting up your small petrol station business?
  • What are the projected balance sheet for petrol station business?
  • What are the marketing strategies for small petrol stations in rural areas or small towns in Tanzania?
  • Since a petrol station is prone to theft, how do you control theft in your business, so that you can see good returns on daily sales?
  • What are the challenges associated with running a small petrol station business, and how to overcome them?
  • What is the financial projection for small petrol stations?

 

For the complete report for setting up and running a petrol station business  in Tanzania, make a payment of $100 (or its equivalent in Tanzanian Shillings TZS 200,000) through Tgo pesa, M-pesa to this number: +255655376543.

Once your payment is done, send an SMS to +255768183677 or +255655376543 with the following details:

  • Your full name.
  • Your email address.

Alternatively, send an email with the above details to info@tanzaniapetroleum.com. The moment we receive your email or SMS and we confirm your payment, the report will be delivered to your email address (in PDF) within fifteen minutes.

You can then download it and read it on your smartphone or computer.

If you’re not in Tanzania, send an email to info@tanzaniapetroleum.com and we will devise a payment option for you.

Who Else Want to Invest in Booming Liquefied Petroleum Gas(LPG) Opportunities In Tanzania

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Tanzania has been faster to develop in terms of LP Gas Growth. With favorable government initiatives, investors can get solid returns on this investment through the rapid growth of LP Gas consumption in the country.

You can find opportunities for LP Gas in households (families) hotels, schools, restaurants, clubs, mission and lodges, and commercials clients.

The market for liquefied petroleum gas(LPG) is growing at 25 percent. The LP Gas business has attracted over 6000 dealers and companies in Tanzania. And cooking gas retail shops are in every street corner.


I often wonder, how do they make a profit seeing intense competition. But the best part is that, as the number of the household switch to this fuel, demand increase and more customers arise.

Read also: A complete Small Investor’s Guide on How to Set Up Mini Fuel Station With Two Pumps Anywhere in Tanzania’s Rural Areas With Only TZS 55 Million

Outlook

Liquefied petroleum gas(LPG) market (popularly cooking gas ) is expected to grow by fifty percent in the near future due to the wide adoption of LPG as a cooking gas from residential replacing other traditional cooking fuel such as charcoal and firewood.

Furthermore, favorable government initiatives in Tanzania to promote liquefied petroleum gas(LPG) as a clean source of energy for cooking with special focus to discourage deforestation and reduce the use of firewood and charcoal is expected to increase the demand for liquefied petroleum gas in Tanzania.

Three Ways to Get Started With Liquefied Petroleum Gas (LPG) Business In Tanzania.

The following are three ways to get started with the liquefied petroleum gas business are:

1. Small Scale: The first option to go into the LP Gas business is to set up a retail shop in highbrow areas. Location is a key driver to success in small scale LPG business. To start small scale LP gas business you need 35 pieces of gas cylinders(Preferably 15Kg and 6Kg gas cylinder), regulators and hose, and weighing scale.

2.Medium-scale LPG Business: This is also known as a super dealer. Your job is to acquiring cylinders from LPG marketers and transporting them to last-mile dealers. Super-dealers vary widely in size, with the largest managing tens of thousands of cylinders at one time, while others only own a few hundred.


3.Large Scale LPG Business: It involves the installation of a liquefied Petroleum Gas plant. LPG filling plant is a lucrative investment opportunity that needs a lot of strategic planning and high initial capital requirement. The good news is that banks are aware of the potential of this business that is willing to give out the loans. So with a proper business plan, you can get a loan to start this business.