Tanzania Oil Pipeline Project Is Expected To Be Started In 2021
Tanzanian Minister of Energy stated in a speech about the budget that the working on EACOP, i.e., a crude oil pipeline of East Africa, is expected to be started in April, followed by final investment (FID).
From 2019 to 2020, an assessment of impact was proposed. It was decided that the pipeline will be 1,443km in length, and it will connect the port of Tanga from Tanzania to the Albert oil find Lake of Uganda.
According to the reports of Energy Minister Mr. Medard Kalemani, the project’s work will aim to host the agreement made by the government of the region as the project was decided to be a joint venture.
A great deal was made to purchase shares in the license of Uganda from Tullow Oil in April. A familiar deal collapsed in 2019, but authorities were hoping positive for future agreements. Tullow will have to allow a final investment decision to advance the work further. However, politics will be a great challenge for both regions.
If the prediction of Mr. Kalemani will become true, production of oil will start in 2024, a year delayed than the current forecast.
Other than the country’s oil plans, the Minister declared that the country is planning numerous gas projects. Some talks are roaming around regarding the export of LNG. However, the working progress is quite low, and it is expected that the LNG plan will have to pause till the next phase of approval. It is expected that the projects will not start before 2025.
The state of East Africa is planning to export Uganda gas through the pipeline. In 2019-20. The country has received expressions of interest from companies that are willing to work as research advisors. A bilateral agreement was also drafted with Uganda.
Tanzania is planning to distribute the country’s natural or artificial resources via CNG plans, that is, the chink of TPDC, which is the Petroleum Development Corporation of Tanzania. The company owned by the state is planning distribution by a mixture of CNG, LNG, and pipeline plans to multiple regions, including Morogoro, Arusha, Shinyanga, Kilimanjaro, Manyara, Geita, Kagera, Mwanza, Tanga, and Dodoma.
The state of Tanzania has ambitious plans to incorporate the use of gas up to 18.7 trillion cubic feet in the domestic market.
The government is working on the evaluation of the practicability of natural gas usage. The evaluation will help figure out how to promote its use and the total demand across the country. The process of assessment includes a model plan for the city of Dodoma.
As per the records, the gas produced from Mnazi Bay and Songo Songo has penetrated around 210 million cubic feet per day from 2019 to 2020.
The Minister stated that TPDC has planned to bore two wells in the territory of Mnazi Bay North this year.
