Natural gas production in Tanzania
Natural gas has been discovered at Songo Songo in Kilwa and Mnazi Bay in Mtwara. The estimated natural gas reserve for Tanzania is 52 trillion cubic feet. The natural gas is mined and transported through pipelines to Dar es Salaam where it is used to generate electricity. Private companies such as Songas, Pan African Energy Tanzania (PAET), Maurel and Prom (MOP) in co-operation with the Tanzania Petroleum Development Corporation (TPDC) produce natural gas. Songas generates electricity using gas from the Songo Songo Island gas fields. Figure 5.5 shows a gas plant at Songo Songo.
Figure. 5.5 Songo Songo gas plant
Advantages of natural gas in Tanzania Tanzania benefits a lot from its natural gas resources. The resources benefit the economy of the country but also
improve the lives of its people. Natural gas has contributed to the improvement of infrastructure. Transport and communication systems to and from source of natural gas areas have been improved. For example, the discovery and extraction of gas in Mtwara Region has stimulated improvement of the airport and the harbour in the region. As a result, air transport to and from Mtwara Region has also improved. Natural gas has also created the demand for labour, goods and services. There has been an increase in the demand for both skilled and unskilled labour to work in the mines and carry out mining-related activities. Moreover, natural gas extraction has added a source of income for the people. Companies involved in natural gas extraction usually pay taxes and other dues to the government. People living nearby natural gas extraction fields also benefit by selling goods, especially agricultural products to the mining community. People surrounding the mining areas also benefit from the social services such as schools, water and hospitals built to support the mining community. Natural gas may reduce environmental pollution as its use does not produce harmful gas substances compared to other sources of energy such as petroleum. Similarly, the use of natural gas at the domestic level may reduce fuel-wood consumption. This may, in turn, reduce deforestation.
Challenges of natural gas production in Tanzania: Natural gas production faces numerous challenges in different aspects. Natural gas is a non-renewable resource. Therefore, care has to be taken when extracting this resource. Natural gas production is new in Tanzania and, thus, it faces a shortage of skilled labour, especially in exploration and extraction activities. As a result, the government is often forced to employ foreign experts who are paid high salaries. Regarding the capacity to produce the natural gas, Tanzania has not been able to allocate enough funds for exploration, extraction, processing and distribution.
Tanzania’s efforts in addressing the challenges of natural gas production Tanzania has been trying to overcome the challenges associated with the production of its natural gas. The government has been emphasising the use of revenue from natural gas to benefit the people in the areas producing the gas and the nation as a whole. The revenue from natural gas is used to improve social services in education and health. There have been various public programmes aimed to educate the public on natural gas benefits. The ministries responsible for energy and mineral resources in Tanzania conduct awareness creation programmes through various ways such as meetings and the media. The government also provides opportunities for training to Tanzanians in oil and natural gas. These training opportunities aim to build the country’s capacity for exploration, extraction, processing and supplying of natural gas.