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The Tanzanian government will spend $35m-dollars to set up a natural
gas project in Dar es Salaam to solve the country's fuel crisis. The
natural gas project is scheduled to take off early next year.
The government through Tanzania Petroleum Development Corporation
(TPDC) will first start the project in Dar es Salaam before rolling out
to other parts of the country as a long term measure to cushion the
economy against the effects of high fuel prices.
Adam Malima, deputy minister for energy and minerals, said the project
will be implemented in two phases and will be completed in March 2009.
Mr Malima said TPDC and a company from China, Ultimate Petroleum
Technology, are already working on the first phase, which is a pilot
project that will involve institutions and homes in a selected area as
well as vehicles. "We will start with 73 residential houses located in
Mikocheni [in Dar es Salaam], 200 vehicles and institutions, including
hospitals and hotels", he said.
TPDC has already ordered for equipment from abroad for installation at
the project's base at Ubungo, a suburb of Dar es Salaam that also
houses the Tanesco [Tanzania Electric Supply Company Limited]
headquarters and power station. The equipment include fuel dispensers,
compressors, compressed natural gas transporting trailer and storage
vessels.
According to Mr Malima, TPDC and Ultimate Petroleum Technology have
been working together on the project since July last year. In the first
phase, construction of a compressor station and two gas stations where
vehicles will fuel will cost 3m-dollars. The ultimate goal is to put in
place infrastructure for distribution and supply of piped/compressed
natural gas to institutions, residential houses and gas stations.
Mr Malima said TPDC will spend another 32m-dollars in the
implementation of the second phase. He added that the second phase will
require 32m-dollars and involve 8,000 vehicles, 30,000 houses and gas
pipes that will cover 45 km in addition to more networks that will be
used to distribute the gas.
Dependence on charcoal and wood fuel, imported liquid petroleum gas
(LPG) and petroleum will be reduced, subsequently helping to reduce
further deforestation and air pollution.
Going by the current statistics available, a total of 20 manufacturing
industries in Dar es Salaam have substituted petrol with natural gas,
which is supplied from the Songo Songo [along the Tanzanian coast] gas
fields.
Joyce Kisamo, director of marketing and investment at
TPDC, said they are also working on a study to configure vehicles that
use diesel to be using natural gas.
Ms Kisamo said the government needs to provide incentives to make use
of compressed natural gas appealing to both customers and investors.
These incentives include import duty relief on machinery and equipment.
PetrolWorld 50708 Source: EastAfrican website
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