Can you provide an overview of TPDC’s most recent upstream projects?

Currently, TPDC is in the appraisal stage for the discoveries made in 2010. In 2016, the government formed a negotiating team to work on our LNG projects, and since then, we have been engaged in a series of meetings with international oil companies (IOCs) to establish agreements on the corporate governance and administrative aspects of these projects. On the technical side, after thorough investigation by the IOCs, we have identified Likong’o in Lindi as our primary focus area, and preparations are now underway. Various considerations come into play, including feasibility studies, environmental impact assessments, compensation evaluations, and navigating land ownership complexities. As of now, gas supplies from TPDC and its partners account for 50-60% of the national grid, making us a crucial cornerstone of the nation’s economy.

What investment opportunities exist for the expansion of the Mtwara-Dar es Salaam natural gas pipeline?

Tanzania’s recent power shortages are well-known. In response to the ongoing power deficit in 2011, the government initiated the construction of a pipeline to connect gas from different fields, ensuring supply and balancing distribution. The initial phase involved the Mtwara-Dar es Salaam pipeline, a 551-kilometer stretch that was completed in September 2015, providing over 300MW of power. Its success has prompted plans for further expansion across the country. With the planned expansions, the delivery capacity could increase up to 1,000MW.

Which areas will receive priority in the planned distribution expansion?

Initially, we have plans to connect approximately 30-40km in the northern region. Following that, we will focus on entering the cities of Mkuranga, Tanga, and Morogoro, which are important industrial hubs in the region. Additionally, we intend to transport gas to other parts of the country by utilizing compressed natural gas (CNG) vehicles.

What strategies does TPDC have in place to fully exploit the commercial potential of downstream operations?

We have divided Tanzania into four regions. Firstly, in the southern region of Mtwara and Lindi, we are on the verge of completing a study to determine the best approach for leveraging the commercial potential in that area. The second region is Dar es Salaam, where we are currently connected to around 45 industries. However, our goal is to increase this number to over 100 since between 50 and 70% of the government’s industrial revenue comes from Dar es Salaam. By the end of 2017, we aim to divide Dar es Salaam into four sub-regions and establish measures to facilitate collaboration between interested parties and TPDC, expediting development. The third region is the coastal area, which is experiencing rapid industrial growth. We have already made progress in this regard and by the end of 2017, we aim to provide gas access to an additional 12 industries.

How will TPDC balance the need to fast-track projects through public-private partnerships (PPPs) while prioritizing local content?

In 2015, a new statute was introduced, which includes regulations on local content, greatly assisting TPDC. We are currently developing our PPP model for the Dar es Salaam project, which will serve as our initial test case. In some areas, we have already initiated partnerships with industries involved in pre-financing for projects. One of the main challenges we face is the capital-intensive nature of gas projects. Therefore, striking the right balance between seeking partners to achieve our goals while safeguarding Tanzania’s best interests remains paramount.

What are the key targets and objectives for TPDC in the next 10 years?

To begin with, we have incorporated a capacity building and training clause into all our contracts. This approach has proven effective for the past two decades, ensuring that people can benefit in the long run from the success of Tanzania’s energy sector. Educational institutions are actively involved in this endeavor, offering scholarships, developing courses, and providing opportunities for individuals looking to enhance their knowledge in the sector. We have also established a successful collaboration program with a Norwegian university.