Tanzanian suppliers of oil, gas materials demand law to guard them

By Prosper Makene

Former Tanzania ambassador to the UK Mwanaidi Sinare (R) discusses with TOL Gases Limited managing director Daniel Warungu when they met at the Second Oil and Gas Supplies Conference in Dar es Salaam.

Companies which took part in the Second Oil and Gas Supplies Companies conference have said that without enacting laws and framing comprehensive policies local suppliers will not benefit from the natural resources that are produced locally.


Reading his keynote address at a two-day conference in Dar es Salaam, TOL Gas Limited managing director Daniel Warungu, said that the content of legislation was important to protect local investors in the supply of materials in the oil and gas exploration.

Warungu also said that local firms have invested in products are supposed to be used by investing foreign companies thus if there are no law prohibiting foreign companies from importing similar products produced by local investors will suffer from the market.

“We are crying for the fouls that are played by foreign companies which supply everything in the gas and oil sector. We need to have legislation and policies in place that will guide local investors to participate in the supply of the materials in the sector,” he said.

He pointed out that materials that can be supplied in the gas and oil sector such as welding facilities, hospital and industrial gases, liquid CO2 and related products have to be supplied by local investors.

For his part, Tanzania Petroleum Development Corporation (TPDC) petroleum geologist and public relations officer Sebatian Shana said to connect MnaziBay, Kiliwani, Mkuranga, Deep Sea and future gas discoveries is along the way.

“The natural gas from Mtwara-Dar, construction of new gas processing facilities in Songo Songo 140 mmscfd, construction of new gas processing facilities from 210 mmscfd, construction of a 36” 504kms pipeline from Mtwara to Kinyerezi (Dar) and construction of a 24” 25kms pipeline from Songo Songo to Somangafungu are all underway to see the gas project’s success,” he said.

He underscored that as of this month, the total number of pipes that will be laid in a distance of 504kms is 46,693.

“At least 100 percent shipment has been completed giving away leave clearance of 99.8 percent. Transport to site is 340kms of which 89.57 percent have been completed, stringing and welding is 303kms of which 83.3 percent have been completed, trenching is 168kms of which 52.19 percent has been completed and fiber optic lowering–in is 105kms of which 36.63 percent has been completed,” he said.

He noted that the government is coming up with appropriate policies and a legal framework to guide future exploration and exploitation of the resources. 

SOURCE: THE GUARDIAN