PLANS to construct a natural gas pipeline form Dar es Salaam to Tanga and extension to Mombasa in Kenya are currently being reviewed after gas supply increased.
Tanzania Petroleum Development Corporation (TPDC), acting Managing Director Kapuulya Musomba told the `Daily News’ that plans for the envisaged 530 kilometres gas pipeline was put on hold after gas supply declined which made exports to the neighbouring countries impossible.
The country to date has enough gas to meet domestic demands and exports from Mnazi Bay, Songo Songo and from another new field at Ntorya in Mtwara, he said. He said they are reviewing the entire project by updating the previews feasibility studies prior to next move.
“After upgrading previous study we will scout for investors or fund to build the pipe,” he said hinting they may approach World Bank for the fund to construct the pipeline from Dar to Bagamoyo before connecting to Tanga and eventually Mombasa, Kenya.
“From Tanga, then the pipe could be connected to Uganda. Through this route we will connect central and western corridors—Dodoma to Mwanza,” he said. He said reviewing the pipeline project was propelled further by recent remark by Uganda’s President Yoweri Museveni that they want the gas also.
He said during the inauguration of Hoima-Tanga oil pipeline in Tanga. The proposed gas pipeline will include gas skid supply terminals in Tanga and Mombasa.
Back then in early 2010, the pipeline from Dar to Mombasa via Tanga was thought to cost between 515 million US dollars and 630million US dollars, as per East African Community study.
The study conducted for EAC by Denmark’s COWI assumed the pipeline would be in place by 2015. The study suggested that four most feasible options for the pipeline were for it to run across land as opposed to sea, which would be too expensive.
“The feasibility study comprises four on-shore routing options and one off-shore option,” the study said. The study said that along the route there was possibility of supplying gas to a cement factory in Tanga.
TPDC’s Managing Director said there were new developments in Tanga as more cement plants are in the pipeline, creating fresh gas demand. The study said that on the Kenyan side, customers targeted included industries in Mombasa and four existing heavy fuel oil-powered plants producing a total 299.5 MW.
Tanzania’s natural gas reserves currently stand at about 55tcf following new deep sea discoveries off the country’s southern coast. The East African second largest economy is finalizing plans to set up a liquefied natural gas processing plant in Lindi.