The Minister said the project is due to be completed in January 2015.
The pipeline is funded by a $US1.2 billion Chinese loan and will enable the country to double its power generation capacity to 3,000 megawatts. Lu-Youging stated that the project is important for the economy of Tanzania as it will contribute to the country’s industrialisation and lead to increased employment.
Tanzania has 43.1 Tcf of recoverable natural gas reserves and anticipates that this number will rise fivefold within the next two years if new finds prove productive.
Tanzania has so far licensed 16 international energy companies to search for oil and gas. British gas firm BG Group, Norway’s Statoil, Brazil’s Petrobras, Royal Dutch Shell, and Exxon Mobil are among companies already operating in Tanzania.