Tag Archive for: oilnewskenya

4 Facts Every Tanzanian Sholud Know About Gas Industry

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Discovery of natural gas in Tanzania is greeted with great optimism, Citizens believe gas is money, and they think through discovery of gas their lives could change dramatically, They think  gas sector  would bring millions of jobs, and their sons, daughters relatives or themselves  will be employed. they bel.In other word they have a lot of expectations. 

However their expectation are unrealistic and after knowing these factors you will be aware  on how real situation is

1.Few jobs in Oil and gas sector

Reality is, there is very few jobs in Tanzania petroleum field due to nature of the industry. if you don’t trust what i tell  you,  read this: see why discovery of natural gas in Tanzania could not bring Too Many jobs to Tanzanians as they believe

2.Gas is flowing and government earn money from it.

Citizens believe gas is flowing therefore government  and investor are benefit from the revenue generated from natural gas industry. This is untrue. see here why:misconception many Tanzanians on natural gas industry

3.Natural gas industry would improve their living standard

When people  talk about this, they take an example of country like Norway, where the discovery of oil in 1969 turn Norwegians into some of the wealthiest people in the world. But the most important things people forget is they never realize that Norway were quite well off even before the discovery

4.Only leaders and rich men will benefit from revenue generated from gas industry.

Citizens believe revenue generated from natural gas will stay in the hands of corrupt leaders  and politicians instead of benefit local community. This also is wrong misconception because recently, petroleum companies operating in Tanzania are more detailed about their financial report and also they publish information on the site where they work. This would make difficult for revenue generated from gas industry to stay in the hands of leaders.

MY FINAL WORD

Citizens should be given the right information and from the right sources so as they can be aware on the Tanzania petroleum field.

Gulf PetrochemTo Acquire Terminal in Tanzania and Kenya

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Abu dhabi: Sharjah-based Gulf Petrochem will invest about $80 million (Dh290.4 million) in the next one year as part of its expansion plans in Fujairah and East Africa, a top company executive told Gulf News.

“We are planning to spend about $25 to 30 million in acquiring new terminals in East Africa and about $50 million in adding new tankage in Fujairah,” said Thangapandian Srinivasalu, Executive Director of Gulf Petrochem.

The construction work in Fujairah will start next year and the project is expected to be completed by March 2017.

“We are going to add around 260,000 cubes in Fujairah. These tanks will not only cater to trading activity but will also support the refining activity which we are planning. “

On expansion plans in Africa, he said the firm is looking at acquiring terminals in Dar es Salaam in Tanzania and in Mombasa in Kenya.

“The next decade belongs to Africa and there are tremendous business opportunities in East Africa, which is politically stable and secure. There is steady growth of 5 to 7 per cent in Tanzania, Kenya and Uganda.”

Started in 1998 with the commissioning of a refinery in Sharjah’s Hamriya Free Zone, Gulf Petrochem is a conglomerate worth $2.5 billion with business operations in oil trading and bunkering, refining, storage terminals, bitumen manufacturing, lubricants, shipping and logistics.

“We have been growing at a decent pace. Our plans and expectations are to keep up with this pace. In the last one year we have gone full length [in terms of] barrel trading. We have expanded our operations in coal and pet coke.”

According to him, their focus of growth will be the UAE, India and East Africa.

“Today majority of our revenues are coming from this geography and our investments are more here. We are planning to acquire lubricant companies and bitumen plants in India as we seek to expand in the Indian market.”

You can also read :citizens of tanzania support extracting and selling of natural gas internationally

The company is in the process of commissioning Hamriya terminal in Sharjah.

It is a state of the art modern terminal which can handle full range of products, both classified and non classified, Thangapandian said.

On falling oil prices and how it is impacting their business, he said it has been good for the company.

“Except E&P companies everyone will be happy with low crude oil prices including consumers, marketers and traders. Thanks to the surplus of product and contango in the market, the storage tanks are full.”

Speaking about the trade relations between India and the UAE following the visit of Indian Prime Minister Narendra Modi, he said they had been positive.

“[The] UAE wanted a signal from the Indian government that you are more than welcome and we are going to give you the full support. That signal has been given.”

He said the UAE is looking for places where there is safety and an opportunity to grow.

“Today there are very few economies in the world where you can put the money, expect it to be safe and keep growing. India is a positive market and close to the UAE geographically.”

Gulf Petrochem is investing in India as part of its expansion plans. It recently acquired Sah Petroleum Limited, a listed lubricant company and commissioned Pipavav storage terminal in Gujarat. It is planning to acquire lubricant companies and bitumen plants in future.

See Why in Tanzania there is the biggest increases in Demand for Natural gas

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The
aboundance of natural gas reserves in Tanzania  attracts many investors , contractors,
equipment suppliers  and consultant firms
to offer business opportunities  in
Tanzania.  This  implies that, natural gas will continue  to play an increasingly important role in
meeting demand for energy in Tanzania.
       There are many reasons for the long term
expected  increase in demand for natural
gas in Tanzania, which include the following.
1.Increase
 in the number of  New homes
New
homes increase day after day, family size increase as well, as these new homes built,
the consumption of natural gas mounts, and the number of families use natural
gas to cook and heat them also increase.Therefore increase of new homes using
natural gas is expected drive demand for Natural gas in Tanzania.
2.Expansion
of gas based power generation
The
largest addition to gas demand in Tanzania where the most of expansion of power
are taking place.  forexample the
construction of kinyerezi 1 gas fired power plants, they will be supplied gas
from Mtwara through Mtwara-Dar es Salaam pipeline, So more gas will be needed
to meet the demand as the result of natural gas demand increases.
3. Technological
Advancements – Currently, the majority of energy used by the commercial
sector is in the form of electricity. Similarly, many common household
appliances can only run on electricity. The advancement of natural gas
technology in the form of offering natural gas powered applications that may
compete with these electric operated appliances may provide a huge increase in
demand for natural gas. Natural gas cooling, combined heat and power, and
distributed generation are expected to make inroads into those applications that
have traditionally been served solely by electricity.

Transportation
Natural
gas use in transportation are almost negligible.Although natural gas powered
vehicles are very useful for reducing environment pollution compered to fuel
powered vehicles. The demand for alternative vehicles fuel vehicles (Including
natural gas vehicles) will increase demand in natural gas. Although to
accomplish this, technology is required.

MY
FINAL WORDS
This
general increasing of natural gas demand in Tanzania can be expected to the
general growth of economy of Tanzania and improving living standard of
residents.
Dear
readers we would love to hear your views on all of these

Mnazi Bay Gas Wells Deliver 1st Gas to Tanzania Pipeline

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East Africa-focused junior producer Wentworth Resources announced Friday the first gas delivery from its Mnazi Bay Concession in southern Tanzania to the country’s new transnational pipeline.
Wentworth said that two wells are now producing, with the three remaining wells expected to be put on production in the coming months. Initial production volumes will be used for commissioning purposes and to fill the pipeline, with production rates expected to increase to 70 million cubic feet per day by October this year and 80 MMcf/d by the end of 2015.
Wentworth added that the Mnazi Bay joint venture partners have agreed payment security terms with Tanzania Petroleum Development Corporation, the buyer of the gas, and various other parties.
Wentworth Managing Director Geoff Bury commented in a company statement:
“We are very pleased to announce that production from Mnazi Bay has now commenced and the Mnazi Bay joint venture is the first supplier to the new transnational pipeline in Tanzania. Concluding the payment guarantee and starting production in our Mnazi Bay gas fields are pivotal events for Wentworth and underpin the long-term viability of our operations in East Africa and our partnership with Maurel & Prom and TPDC.
“Wentworth is well positioned to become a significant gas producer in Tanzania, where supply and demand dynamics offer an opportunity which we and our partners are uniquely placed to realize. We expect to exit 2015 in a strong financial position.”

Discovery of Natural gas in Tanzania can change Nationa Economy

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If you are looking for house in Dar es Salaam hurry up. With the recent discovery of massive natural gas reserves affordable houses will soon become rarity.
Those proved and potential reserves can be game changer for Tanzania

Tanzania Petroleum Development Corporation (TPDC) Awards CGG Airborne Gravity Gradiometer Surveys

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CGG announced  that it has been awarded a contract by the
Tanzanian Petroleum Development Corporation (TPDC) to acquire
high-resolution gravity gradiometry and aeromagnetic data over two
onshore areas along the South-Eastern Tanzanian Coastal Basin and the
eastern arm of the East African Rift.
Acquisition over a total area of 30,000 sq km will commence in mid
August 2015 and is scheduled to last up to two months. Using the
industry’s lowest noise Gravity Gradiometry, FALCON®, CGG
will deliver high-resolution data and interpretation to help evaluate
the hydrocarbon potential of these basins ahead of future licensing
rounds.
Tanzania has already established itself as a highly prospective
hydrocarbon province in East Africa with a series of significant
discoveries offshore and CGG is excited to be part of this next phase of
TPDC’s exploration of the onshore basins. This survey will benefit from
the experience gained through the completion of many projects
throughout Africa using the most advanced technologies available in the
industry.
Greg Paleolog, Senior Vice President, CGG Multi-Physics, said: “CGG
is delighted to work with TPDC to improve understanding of the structure
of these basins and to assist in the identification of suitable areas
for future seismic acquisition. With the selection of our FALCON
service, we can ensure that TPDC and potential operators will have the
best quality data and interpretation products ahead of the proposed
licensing round.”
“We know that there have been significant discoveries in the Kenyan
and Ugandan parts of the Rift Valley, and there may well be undiscovered
oil or gas reserves on Tanzania’s side,” Dr. Mataragio, the Managing
Director of TPDC explains. “The two-month-long basic Airborne Gravity
Gradiometer survey is imperative given the significant reserves
discovered in similar geological settings in Kenya and Uganda. The
promotion of our blocks is part of TPDC’s core business and this
exploration effort will add value and attract investors.”
Early this month the Parliament of the United Republic of Tanzania
passed a new Petroleum Bill, which will be signed soon. Under the new
Petroleum Bill, TPDC is now lawfully recognized as a National Oil
Company (NOC). The NOC will participate fully in exploration and
production of oil and gas and this campaign in particular signifies the
commercial commencement of NOC in E&P activities in Tanzania.