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Lubricating Oil A booming business opportunities in Tanzania

 

Ever heard the saying  “Everything about oil and gas is money” The statement hold true.  From searching for, extraction,  processing and marketing oil and gas products.

Lubricant  represents an important petroleum product in Tanzania, Everyone is in contact with them, Either direct or indirect.

The lubricating oil business is booming in the present day.Why? Tanzania is among of best lubricants’ consumers.Don’t agree with me?

Well, Prepare yourself for a shock

According to official data, the country has imported 1,190,440 metric tonnes of petroleum products (Including Lubricant oil) in the first quarter of 2015.This indication that Tanzanians are biggest consumer of the products

Business has been attracting lots of entrepreneurs, because of solid profit it generates. However, you can come in and still and reap abundant profit.

Individuals, Factories Firms. vehicles and all means of transport are the victims of lubricants. As they introduce introduce lubricants oil between two surfaces in relative motion to reduce heat and friction to make equipment and vehicles run properly.

People make the living doing  such business plus better return. Right? And here are all about this business

Why lubricants oil is profitable business

Ultimate profit Let’s take that you buy 4 pieces of break fluid @ 35000Tsh as a case study the average profit you can get is 10,000Tsh.you sell each piece by 6000Tsh. If you sell 4 pieces of brake fluid a day you earn profit 10,000. In a month 10,000* 30=300,000 Tsh. Imagine for a moment. You make profit of 300,00 Tsh a month by just selling only one type of lubricants

The best part Most people are unaware of real prices of Lubricants but sellers know exactly. And taking advantages of people’s ignorance to make windfall profit if it is unjustified Less risk Unlike other oil and gas investment, lubricant oil first is the durable product, you can keep staying with grease in the stock upward 2 years without spoil. Still doubt? the lubricant is non-flammable products like diesel oil or cooking gas

Why is there immense demand of lubricant oil in Tanzania? It’s really simple.Tanzania’s the economy is growing

Despite the decline of the global economy because of world’s market price fluctuation.But Tanzania economy has grown by 6.5 percent in the first quarter 2015.

So, what does that mean?

That means, people’s life will improve. As the economy growth goes hand in hand with uplifting citizens’ lives

More citizens will move from the rural to urban area. Many will own their own cars. And all cars depend on lubricants like grease, engine oil motor oil to run.,

And the good news is that Tanzania government stand to be industrialized .And guess what?Lubricants oil will be in high demand for car owners and factories so as to operate their machines smoothly

 

Top selling lubricants products  in Tanzania   Automatic Transmission Fluid(ATF) this lubricant mainly use in vehicle with automatic transmission Because it’s easy to use, Automatic vehicles are highly valued as a result demand of ATF is relatively high

   Brake and Clutch fluid. Ever heard car crash because of brake failure? Right, this fluid play important roles in motor vehicles bicycles, every motor vehicle owners must often buy  to increase brake force of the motor vehicles.

And It’s classification is rated as “DOT 3” and “DOT 4” DOT 3 mainly used for heavy truck and Dot 4 for light vehicles

   Grease: It’s either for industrial purpose or domestic, lots people use greases to reduce heat and frictions in machines, And the best classification of grease is mp 3

   Diesel engine oil. Is highly consumed products as used in multiple ways. It uses  in the engine to power heavy truck, tanker, to power bigger generators used in factories and individual

Market for Lubricants The large market of lubricant oil is automotive industry which take approximately 60-70 percent and the 30 percent is occupied by construction industries (mainly road) and cement industry

Where to get lubricants in Tanzania The largest distributors of lubricant oil in Tanzania are Total, Puma energy and Oryx

Tips to succeed in this lubricating oil business                    Get licences and business Interested Tanzanian should get a permit from relevant authority before they start doing, why? We all aware oil and gas is regulated business, permit and licence are essential to avoid unnecessary annoying.

                      Get warehouse It depend on amount of products you want to buy but having warehouse to safely protects products from damage and thieves.

 

  An Important  Note.

Finding  a  high quality of lubricant oil supplier can be a daunting.

 

Tanzania petroleum with its international partner can distribute the lubricant oil products called   : SAFETY TRACTOR OIL (manufactured with the European quality Standards) everywhere in the world,

 

SAFETY TRACTOR OIL COULD BE USED AS FOLLOWS :

  1. It is a Diesel Engine Oi, for the agriculture tractors with the above shown API and ACEA grades in the above mentioned colored flyer.
  2. It is a transmission oil for the manual gear, semi-automatic transmissions and hydrostatic transmissions.
  3. It is a hydraulic oil for the agriculture equipment including the tractors
  4. It is used for oil immersed brakes.
  5. Safety Tractor oil contains a friction modifier which avoid the vibration and noise when the brakes are operated

 

Pack sizes : 1 Liter, 4 Liters, 5 Liters, 20 Liters, and 200 Liters

CIF Prices (your destination port) per carton as follows :

PRODUCT                          CARTON SIZE               CIF PRICE 

USD      EURO

 

Safety Tractor Oil                    21 X 1LT                   68.00      55.00

API 10W-30, ACEA E3

 

Safety Tractor Oil                      6 X 4LT                   69.00      56.00

API 10W-30, ACEA E3

 

Safety Tractor Oil                      4 X 5LT                   58.00      47.00

API 10W-30, ACEA E3

 

Safety Tractor Oil                         20 LT                    56.00      46.00

API 10W-30, ACEA E3

 

Safety Tractor Oil                       200 LT                   525.00      424.00

API 10W-30, ACEA E3

_________________________________

 

Safety Tractor Oil                    21 X 1LT                   66.00         54.00

API 15W-30, ACEA E3

 

Safety Tractor Oil                     6 X 4LT                    68.00         56.00

API 15W-30, ACEA E3

 

Safety Tractor Oil                     4 X 5LT                    57.00        46.00

API 15W-30, ACEA E3

 

Safety Tractor Oil                        20 LT                    54.00        44.00

API 15W-30, ACEA E3

 

Safety Tractor Oil                      200 LT                   510.00       412.00

API 15W-30, ACEA E3

______________________________

 

Safety Tractor Oil                   21 X 1LT                    63.00        51.00

API 15W-40, ACEA E3

 

Safety Tractor Oil                     6 X 4LT                    66.00        54.00

API 15W-40, ACEA E3

 

Safety Tractor Oil                     4 X 5LT                    55.00        45.00

API 15W-40, ACEA E3

 

Safety Tractor Oil                        20 LT                     53.00        43.00

API 15W-40, ACEA E3

 

Safety Tractor Oil                      200 LT                   502.00       405.00

API 15W-40, ACEA E3

_______________________________

 

If you’re a genuine  buyer of lubricants oil   , kindly reach out  through   Hussein.Boffu@tanzaniapetroleum.com or

0655 376543.

If you’re only a scam, don’t waste your time, as the conversation wouldn’t last too long after a few questions and demands to prove your authenticity have been made from our end.

 

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WB urges Uganda to guard against volatile oil prices

imagesThe World Bank has asked governments of Uganda, Kenya and Tanzania to develop insurance measures to guard against fluctuating oil prices as they prepare to begin production.

Prices of oil and gas usually affect the cost of goods and services at both national and international markets.
Uganda has both oil and gas deposits, Kenya has oil, while Tanzania has large deposits of gas and the three East African countries are preparing to begin producing for local and international markets.

Addressing participants at a regional conference on oil and gas in Entebbe recently, the World Bank Senior Economist Uganda country office, Dr Jean -Pascal Nganou, said oil and gas prices will always fluctuate and countries should be prepared to handle the consequences.

The conference was organised by Friedrich-Ebert-Stiftung.
He said in case of price dip by diversifying their by economies instead of aligning every development agenda to oil and gas revenue.

Also Read:7-ways-to-make-money-in-Tanzania-oil-and-natural-gas-industry

“Oil and gas prices will always fluctuate, consequently, oil and gas producers should develop by themselves and for themselves a good insurance mechanism against sudden drops in world prices,” Dr Nganou said.

He added: “Saving part of future oil revenue is the most adequate response to that type of problem. Several governments have opted for a variety of oil revenue saving mechanisms.
“Uganda, Tanzania and Kenya should review these mechanisms, analyse the results achieved, and make their own choices based on realistic assessment of their own situation, needs and risks.”

The World Bank produces periodic reports on world commodity price focus. In the latest report, the bank raises hope that there is going to be a pick-up in oil prices in the international market.

In this regard, Dr Nganou said: “Our commodity price specialists believe that the price of oil will rise again and most of the projections in Uganda are based on international crude oil price of $90 (Shs319,500) per barrel. We may be right, we may be wrong and this is one of the lessons for a good management of future oil revenue.”

Other challenges
Other than oil prices, East African countries are also faced with the problem of poor infrastructure, which affects the development of the private sector. The infrastructure includes power, roads, railways which East Africa must deal with to realise tangible development.

“Countries like Uganda, Kenya and Tanzania need to repair, and expand their economic infrastructure which at present is a major obstacle to private sector development,” the World Bank senior economist Uganda country office, Dr Jean -Pascal Nganou, said.

He said improved transport, power and water supply services are essential to stimulate urban and rural growth and improve the condition of the population.

The resident director Friedrich-Ebert-Stiftung, Ms Mareike Le Pelley, said oil and gas exploration is not an end in itself for the development process.

“The East African region has had high GDP growth rate but other social indicators like income distribution, unemployment and concept of inclusive development have not yet taken root in the region,” she said.

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Natural Gas Does More than Generating Electricity and cook food 

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Natural gas has so many uses and benefits to people. The sad reality is that most of us we think natural gas has nothing to do with us than producing electricity and cook food

This article examines applications of natural gas in our daily life.

let meet them

Food companies
Food companies use natural gas to dry several products like chips and potato
Industrial uses
Uses natural gas to generate steam for run various operation
Fertilizer
Natural gas is used as raw materials to manufacture ammonia for agriculture fertilizer

Other natural products that depend natural gas on their making
Natural gas is comprised of chemical like ethane butane propane. So companies process ethane to make ethylene.

Ethylene is used to manufacture plastic know as polyethylene which used to make several products Likes Toys, Housewares

Propane and butane as components of natural gas  also used to manufacture chemical building block
Transportation fuel
Many people are not aware that natural gas vehicle is already in many parts of the world since it has less environmental pollution compared to oil powered vehicle.

Natural gas is used to manufacture paper, clay, stones, and glass

Bonus: Natural gas also is used to dry clothes

Also Read:5-things-no-one-tells-you-about-Tanzania-oil-and-gas-workers

Final words
Recent days, due to environmental and economic and technological natural gas have become the fuel of choice for new power plants. Also operating costs for natural gas equipment are lower than those of energy sources

 

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7 Ways To Make Money In Tanzania Oil and Natural Gas Industry

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Are you really looking for a way to make money in Tanzania oil and gas industry?

Fancy to join the league of oil and gas business  in Tanzania?

You are about to learn great stuff

Since 2010 several natural gas discoveries have been made in offshore southern Tanzania.

This led to a flock of numerous investors and companies to invest in oil and gas sector.

The natural gas discoveries have created new investment opportunities

The articles explore several opportunities to make money in Tanzania oil and gas industries by supplying services and products in this industry and also explains tips to succeed in this business

Let’s face them

1:Supply expandable equipment
Provide anything that oil and gas exploration companies need to get oil and natural gas out of the ground.
Example of products you can sell or supply to oil and gas companies include the following

Drilling bit is frequently needed to be replaced after boring rock for some miles. Also, you can supply

Drilling fluids are essential products needed by oil and gas companies, especially in drilling phase in order to transport rock cutting away from the well.
Also, you can supply to their pipes and drilling strings.

2:Accommodation services
Since most oil and gas reserves in Tanzania are found in remote sites, you can make money by providing, tents, catering equipment and kitchens to oil and gas companies

3:Logistics services
Is another way to make money in Tanzania oil and natural gas sectors. This can be done by ensuring there is land air or sea transport ,to move people from and to the sites.

4:Safety and health services
In Oil and gas industry health and safety continue to be significant, You job is to supply medicals and best safety personal protective equipment used in land and offshore field, including safety boot, element etc

5:Human resources- You can make money in Tanzania oil and gas industry by supply of permanent and temporary staff that work for oil and gas companies
6:Communication services
Is the another way to make money in Tanzania oil and gas industry, it include providing internet Tv and other recreational facilities to the remote sites
7:Engineering services,
It includes providing welding services water well drilling services. For those Tanzanians who own water well drilling companies, can deliver services to drilling water well to oil and gas companies.

Tips to succeed in these investment opportunities

Capitals
Capital is most popular excuses to many entrepreneurs, but for these investment opportunities start in the scale that is comfortable to you

Location
In order to succeed in this business, you should provide your services or product faster, well and at reasonable prices, It is better to decide the location where you will reach your customer easily, For Tanzania Mtwara is the better places since there a lot of natural gas discoveries.

Calculate risk
As you understand, every business has its risk. As oil and gas business is a very volatile due tendency of oil downturn It is better to know the risk of each business in order to know how you can avoid them.
Permit/licences
You should get a permit of driving your business from the concerning authorities in order to avoid unnecessary quarrels

Final words
There a lot interesting oil and gas business-opportunities-in-Tanzania , However, it can get very confusing if you don’t know where to look If you have read the article, I congratulate you! Since you have already discovered some of them

Dear readers we love to hear all of these from you

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Tanzania Seafarers To Start Exploration of Oil and Gas in Deep and Shallow water

THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

THE Tanzania Seafarers Community (TSC), has declared its readiness to start performing a wide range of tasks associated with exploring oil and gas, both in deep and shallow waters.

The move comes after the accomplishment of all legal procedures and fulfillment of sailor’s demands such as health insurance and working contracts to companies that they will be working with.

Speaking in Dar es Salaam, the TSC Chairman, Mr Frank Chuma said that they have reached agreement with the government on the fulfillment of important requirements that are needed by seafarers.

He said next process shall be signing contracts between the Community and Tanzania Petroleum and Gas Development Corporation (TPDC). “We are happy that everything went smoothly in accordance to expectations although it took three years until the accomplishment. We are now ready to work anywhere within and outside the country,” he said.

Also Read:     interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

“The TSC concern was to see local sailors benefit from opportunities that shall be found in their homeland,” he added. He said the move shall reduce unemployment rate for local seafarers who are about 5,000 country wide, as they are now going to be attached to both foreign and local companies that are associated to the oil and gas exploration sector.

“In accordance with Tanzania shipping business laws, for a sailor to go to the sea he/she must have insurance. We therefore recommend the remarkable contribution by the finance ministry,” he said.

He added that the issue of employment is a major problem for sailors something which pushed them to have number of consultation meeting with different stakeholders including China embassy, Tanzania Ports Authority (TPA), TPDC and the Ministry of finance.

He said, the Chinese Embassy has agreed to cooperate with them in fishery, oil and gas as well as other related activities and they are ready to bring their gears to help revive the activities in the country.

For his part, the renowned maritime instructor Mr Charles Chagula, urged the sailors to work hard once being attached to the companies as a way to prove their capacity and morality.

“We have reached the ultimatum of what we have been fighting for the past three years, it is our turn now to work hard and ensure effective delivery of our profession to the public,” he said.

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Oil production set to promote Tanzania

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Tanzania, with its oil seeps, seismic and other data shows strong hydrocarbon potential in its upstream oil industry sector. However, only 20 ‘wildcat’ exploration and eight development wells have been drilled so far in a 222,000 km2 area and therefore, the country could be classified as under-explored.

Also Read:2-reason-why-east-African-oil-and-gas-industry-could-change-global-energy-market

 It is therefore, telling that Dr David Mestres Ridge, the CEO of Swala Energy Tanzania noted in a key address to the company’s shareholders meeting held in Dar es Salaam recently that, “though Tanzania is currently poorly placed on the African and global map among the top oil and gas producers, the situation should change in a decade if the offshore gas is produced”.

The global oil production has tripled in 50 years with the biggest increase being in Europe and Eurasia and the Middle East. The bulk of oil production has been from the Middle East and the neighbouring countries, followed by North America and Europe and Eurasia (with most gas deposits and production being found in the Russian Federation).

The Middle East produces most oil but it’s third in gas production. Africa’s prospects, though comparatively mediocre in terms of oil/gas production, has been ably represented by Nigeria, Angola and Algeria but soon, as Dr Ridge noted, Tanzania might also stand out to be counted among the Africa’s greats in oil and gas production. Barely two decades ago, there was evidently little enthusiasm by oil exploration and production companies to venture into East Africa.

However, in recent years, there has been a new-found interest in the region’s oil sector-an interest that has sparked jostling for exploration ‘blocks’ by scores of potential investors in the industry. Among those investors is Swala Energy Tanzania, a locally-owned oil and gas company that has been listed on the Dar Es Salaam Stock Exchange (DSE). Swala’s current exploration blocks are in Pangani in the north-eastern coast of Tanzania and the Kilosa-Kilombero basin in Morogoro region, the latter of which the company will start drilling in 2016.

The attendant exploration activities have led to some new ‘finds’ within the region and has whetted further interest by oil companies to keep a keener eye in the region. Among the finds, Uganda leads the pack.

It recently discovered 4 billion barrels of oil, followed by Kenya with 600 million barrels, an admittedly sizable combined quantity in a region that had been neglected for a long time. Tanzania on the other hand, has held sway in gas production and boasts such vast deposits that, as Dr Ridge notes, “…if poured all over the country, they could cover the whole country to a height of 1.5 metres”!

Dr Ridge foresees a bright future for the oil sector in East Africa in general and in Tanzania in particular and the country could be a regional oil and gas powerhouse if the offshore gas is developed. The recurring unpredictably erratic oil prices have displayed a yellow light to the oil and gas companies, making the investment in the sector a potentially risk-prone undertaking.

The prices have been determined by overriding factors among which are: lower prices in North America due to abundance of shale gas, medium prices in Europe supplied mainly by gas from the Russian Federation and higher prices pushed by the Fukushima nuclear disaster in Japan a couple of years ago. The price slump climaxed between 2014 and 2015 with a drastic fall from over $120 per barrel to the current $ 50 per barrel.

“The implications of the collapse of the prices has meant less revenues from oil production and therefore, countries will have to tighten their belts while projects that were previously viable and competitive at lower prices will no longer be feasible,” says Dr Ridge. Though it might be cheaper to produce oil/gas in East Africa, Dr Ridge sees a major challenge in transportation to the market once the production starts.

This is because most of the closer markets are already being supplied by the existing producers for example Latin America is supplied by Bolivia, Nigeria supplies Europe, Brazil and Japan, Russia too send gas to Europe and it’s soon expanding to China and Japan. With the congested market, Dr Ridge sees East Africa’s option, as a late entrant to the fray, will have to send its commodity to Japan.

“It’s probably going to be cheaper to produce oil and gas in East Africa but its distance from the markets will mean more expensive transportation costs,” notes Dr Ridge and adds that besides the distance, there will still be competition particularly from Australia, Qatar and Russia.

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See Life Condition for offshore Oil Workers (Including Food, Accommodation, Working Hours, Fun and sports, Salaries)

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Would you like to know the life in oil and gas industry?

Are you very curious to know what oil and gas workers eat at their workplace, how they sleep, how long they work?

 it is  allowed for oil and gas employees to use the mobile phone at their working place?

You are about to learn excellent stuff
Articles examine the life condition  of   Oil and gas workers at their working places in offshore field.

From the time, they start to work, their food until they go to bed. Since the majority of Tanzania Natural gas discovered on the deep sea(Offshore) The article explains offshore lifestyle of oil and gas workers .

Okay let’s go
Food
Most of the oil and gas rig have restaurant –type where various kinds of food are offered to oil and gas workers.imgres

Food and fruits delivered to the rig by helicopter or supply boat. So breakfast covers porridge fruits and other foods.

You will never use your pocket money to buy food. All expenses of food are provided by the company. And the good news is that there is a team of the kitchen who prepares food.

Due to the nature of oil and gas jobs, employers are very careful to ensure that, oil and gas employee are getting well-balanced food so as they can do the job properly.

Also Read:3-surprising-benefits and-disadvantages-of-working-in-oil-and-gas-industry

Fun and hobbies
In the offshore platform, there are many places for entertainment, stuff like a pool table, for those who are often exercised there is a gym. Also rooms with TVs, DVDsimages

Working hours
Offshore oil and gas employees work in shift, usually day or night, shift takes 12 hours followed by 12 hours of rest

Salaries
Salaries for oil and gas workers differs from one person to another it depend on your role and company

Medical test
Medical care is the fundamental issue in the oil and gas companies, during an interview and before you go for working you should prepare for a medical test.

Accommodation

Accommodation in the offshore life vary from one company to another but most common accommodation is a single room with facilities like TV, toilet also is available that are shared by shifted staffs.Spaces are issued on offshore lifeimages

The use of mobile phone for offshore oil workers is prohibited for safety purpose,

Although public’ card phones and the massive production platforms have broadband internet access which means that you can send and receive e-mails, instant messages and even Skype.

Final words
Life condition on offshore platform is not easy, however, many oil companies make sure time you spent on platform is really enjoyable, For example, employees may find themselves live in places that meet 3  or 5-star hotels, despite the fact that you are in the middle of the ocean.

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Check Out How oil and gas are Formed—-3 Easy Steps

 

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Everyone in his daily life are in contact with objects that depend on oil or natural gas on their making. For example In order for you are car to run it must be filled with oil, Most of you use gas for cooking.

Have you ever asked yourself where do this oil and natural gas come from?

Without using technical words, the article explains how oil and natural gas are formed with three easy steps. If a reader lack prior knowledge of oil and gas industry, do not worry the article uses simple language in order to give you a better understanding.

 

Note: Oil and natural gas are related products often found in tandem, so their process of formation is similar

Okay let’s see how oil and natural gas formed

Stage 1 – All of the oil and gas we use today began as microscopic plants and animals living in the ocean millions of years ago.. In the shallow water where these animals lived, sweep current comes on and pushes these animals down where there is not sufficient oxygen to live and so they die.

Over millions of years, these layers of sands and animals are burned and covered by more layers until the first layer get very deep.

Stage 2 – as they became buried ever deeper, heat and pressure began to rise. The amount of pressure and the degree of heat, along with the type of biomass, determined if the material became oil or natural gas.

 

Bonus:

 

In an area where more shallow and organic materials were buried in a short time we get heavy oil

In area where organic materials were buried very deep over 2,000 meters for long time we get only we get lighter oil

If organic materials buried more than 6, 000 meter deep and for a long time we get only  natural  gas

 

Stage 3 – after oil and natural gas was formed. They tended to migrate through microscopic pores in the surrounding rock.

Some oil and natural gas migrated all the way to the surface and ran away. Other oil and natural gas deposits migrated until they were caught under impermeable layers of rock or clay where they were trapped.

These trapped deposits are the reason why we find oil and natural gas today.

Final words
Dear readers, we love to hear all of these from you , don’t forget to leave your comment below

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Tanzania: TPDC hints at grand ambitions for Natural Gas Master Plan

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 developments appear to be on hold for now, our East Africa Politics & Security report points out that Tanzania still appears to have some ambitious plans for the country’s gas future.

With the slowing interest from oil companies, the Tanzania Petroleum Development Corporation (TPDC) appears to be taking the lead in the sector, but there are still issues which need to be resolved in the industry to help build confidence that the ambitions can be fulfilled.

TPDC has spoken of its extensive ambitions for the use of natural gas, serving domestic and regional markets, yet in the absence of any firm plans the ambitions do not create any greater certainty. Regionally,

Tanzania sees natural gas markets in most of its neighbouring countries. Addressing the Kenyan parliament on 6 October during an official visit, President Jakaya Kikwete said that Tanzania and Kenya are ‘discussing ways to extend the natural gas pipeline to Kenya’.

Speaking to the state daily newspaper Habari Leo the following week, TPDC’s Director of Gas Processing, Transport and Distribution, Wellington Hudson spoke of serving markets in the Democratic Republic of Congo, Rwanda, Burundi and Uganda, as well as Kenya.

Also Read:interesting-business-opportunities-in-tanzania-oil-and-natural-gas-sectors-for-local-entrepreneurs

He further told Habari Leo that an investor has agreed to finance a pipeline to Bagamoyo, to service tourist hotels, with the possibility of an extension to Tanga in the north, and Mwanza in the north-west.

The prospect of a natural gas pipeline running parallel to a crude oil export pipeline from Uganda is also enticing to TPDC, which confirmed to Habari Leo that it is in talks with Total to develop such a project. Exploiting Tanzania’s deep sea gas resources will depend on having a feasible Natural Gas Utilisation Master Plan (NGUMP) in place.

Also Read:Top-3-places-on-the-internet-where-evey-tanzanian-can-learn-about-oil-and-gas-sector-for-free

The document has been in preparation since at least 2011, with no sign of it being finalised soon. The NGUMP is critical to allow investors to make a final decision to invest on the LNG plant, as it will determine the domestic market obligation to be demanded by government.

Currently the Statoil Production Sharing Agreement stipulates that 10% be reserved for domestic use, a figure which is also likely to be found in the BG agreement. BG in particular has argued strongly over the past two years that realistic domestic needs can be served by onshore and near shore reserves. They also argue that the feasibility of the LNG plant will be strengthened if their domestic obligation is set at zero.

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Kenya undeterred by plan to build oil pipeline through Tanzania

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Kenya has shrugged off fears over a decision by neighbouring Uganda to consider building a crude oil pipeline through Tanzania.

Kenya brushed aside concerns that Uganda’s plan, if it proves cheaper than the alternatives, would scuttle its infrastructural plans for its own oil pipeline.

Acting Transport Cabinet Secretary James Macharia told the Nation on Wednesday that while Kenya is “keenly keeping a close watch on the unfolding events in Uganda”, it would go ahead with its own infrastructural plans “undeterred”.

“We are going according to our own plans. Nothing has changed,” said Mr Macharia in Nairobi.

Last month, it emerged that Kenya’s prospects of a crude oil pipeline through Hoima-Lokichar-Lamu could be crushed after Uganda signed an agreement with Tanzania to explore the Tanga route.

Uganda, Tanzania, the Tanzania Petroleum Development Corporation and Total E&P Uganda signed a memorandum of understanding (MoU) outlining new pipeline arrangements.

The MoU also invited other interested parties, such as Kenya, to assess and develop the Tanga route, creating a base for developing a crude export pipeline from Hoima to Tanzania’s Tanga port.

If Uganda goes ahead to construct the pipeline through Tanzania, it will deal a major blow to Kenya’s Lamu Port-South Sudan-Ethiopia Transport corridor (Lapsset) project.

“We are simply evaluating the least-cost pipeline route through the East African coast, our plans focus on ensuring our crude oil has value,” Uganda’s Ministry of Energy and Mineral Development Permanent Secretary Fred Kabagambe-Kaliisa was quoted as saying in Ugandan media.

But in Nairobi, Mr Macharia said while Kenya was keenly awaiting the decision from planned talks between President Uhuru Kenyatta and his Ugandan counterpart Yoweri Museveni on the way forward, Kenya’s plans would not be derailed.

“In the last summit which was a few weeks ago, the matter was discussed and what was decided was that the two head of states (Mr Uhuru and Mr Museveni) would hold bilateral talks and chart the way forward.

“Either way we are looking into options which will protect our national interests. There is no cause for concern,” said Mr Macharia.

During his presidential visit to Uganda in August, President Kenyatta said Kenya and Uganda had settled on the northern route for the Sh400 billion crude oil pipeline that would transport oil from Albertine to Lokichar in Turkana County.

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