Thursday, October 23, 2014

Local content gas policy ready 2015

 
By Fariji Msonsa ,The Citizen Reporter
In Summary
Continuing dependency on energy sources that are prone to climate change means delaying the country’s development.

Dar es Salaam. Tanzania expects to have its oil and gas local content policy approved by the end of June next year, the government has confirmed.
Speaking yesterday at the opening of the third Tanzania Oil and Gas Conference and Exhibition, the deputy minister for Energy and Minerals, Mr Stephen Masele, said the policy would spell out opportunities for locals to participate in the sector.
“The policy is in its final stages. It includes views of local and international stakeholders. It will be tabled in the next parliament sitting for discussion and approval,” he said.
He said since oil and gas exploration started in 1950 in what is now Tanzania, only 50.5 cubic feet of gas had been discovered.
He explained that the demand for sustainable sources of energy was growing in the country for industrial and domestic purposes. Continuing dependency on energy sources that are prone to climate change means delaying the country’s development.
“Sixty-six per cent of the world depends on oil and gas as sources of energy which are also crucial resources for industrial production. So we have no way of avoiding use of gas to generate more power,” said Mr Masele. Tanzania also expects to commission the Kinyerezi power plant by the end of the year. He said Tanzania would have 3,000MW by 2015. At least 1,500MW are expected to come out of natural gas-fired sources.
A geologist with the Geological Survey of Tanzania, Mr Masota Magigita said during his presentation that oil and gas had a potential market in the country and across the world given their increasing demand.
He added that, in east Africa dry natural gas production is expected to grow by seven per cent annually between 2014 and 2040.
However, inadequate expertise and advanced technology are among the draw backs for locals to participate in the sector.

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