Tanzania launches $1.33 billion project to pipe natural gas to capitalStaff writer ▼ | October 13, 2015
Tanzania has initiated a $1.33 billion project to pipe natural gas to its commercial capital, Dar es Salaam, and help relieve chronic power shortages in the city, the president's office said.
Energy in Africa Natural gas for Dar es Salaam
Most new plants will be gas-fired but Tanzania also wants to use coal reserves and renewable resources such as wind and geothermal.
The expanding capacity will help meet domestic demand as the government connects more people to the national grid beyond the 40 percent who are connected now, and offer the opportunity to export to neighbours.
Tanzania estimates it has about 55 trillion cubic feet (tcf) of recoverable natural gas reserves off its southern coastline. 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 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. ■