The 532 km Mtwara-Dar es Salaam pipeline and gas processing plants, largely financed by a Chinese loan, is part of a plan to add about 2,000 megawatts of new gas-fired electricity generating power by 2018, to increase Tanzania’s generating capacity to 10,000 MW by 2025.
The news source reports that Tanzanian president Jakaya Kikwete recently inaugurated the pipeline and gas processing plants.
Most new plants will be gas-fired but Tanzania also wants to use coal reserves and renewable resources such as wind and geothermal, Reuters reports.
The expanding capacity will help meet domestic demand as the government connects more people to the national grid beyond the 40 per cent who are currently connected, and offer the opportunity to export to neighbours.
Tanzania reportedly estimates it has about 55 tcf of recoverable natural gas reserves off its southern coastline. According to the news source, discoveries in Tanzanian and Mozambican waters have led to predictions the region could become the world’s third-largest exporter of natural gas.
The government reportedly said it hopes by switching to gas-fired power plants to save around $1 billion a year in oil imports for electricity generation after the completion of the pipeline.