Bunge committee counsel mining investors

DAR ES SALAAM: THE Parliamentary Committee on Energy and Minerals has told investors in the sector to make investments that are beneficial to the nation and prioritise the interests of the citizens.

The committee also emphasised that investments should adhere to national laws and promote environmental sustainability while encouraging job creation. The committee made these remarks during a visit to the Lubricants and LPG plants of Oryx Energies Tanzania located in Dar es Salaam over the weekend.

Chairperson of the committee, Ms Subira Mgalu, highlighted that the investment by Oryx Energies has contributed approximately 1.2tri/- to the national revenue over a four-year period from 2021 to 2024. She further noted that the company has provided 1,000 direct jobs and about 25,000 indirect jobs.

“Significant investments have been made by Oryx thanks to the favourable investment environment established by the sixth-phase government,” Ms Mgalu stated.

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She added that the company’s success is a testament to the conducive environment created by the government, including well-equipped laboratories and highly qualified professionals. She also emphasised the government’s continued support for clean energy companies, which has led to an increase in LPG usage from 6 to 25 per cent.

The committee also called on the private sector to continue collaborating with the government to ensure the security of fuel and gas supplies, stressing the importance of developing infrastructure such as storage facilities and distribution centres for LPG.

Oryx Energies Tanzania Managing Director, Mr Imani Mtafya stated that over the four-year period from 2021 to 2024, the company has created 1,000 direct jobs, 99 per cent of which are held by Tanzanians and 25,000 indirect jobs. He expressed gratitude to the government for its ongoing support in advancing the clean energy sector.

On his part, Mr Benoit Araman, Managing Director of Oryx Gas Tanzania Ltd (OGTL), explained that currently, a second phase of investment worth 14 million US dollar (equivalent to approximately 32bn/-) is underway to expand the LPG plant’s storage capacity.

This investment aims to improve supply security and facilitate broader access to LPG across Tanzania. He noted that part of the ongoing work involves constructing additional storage facilities to ensure a reliable supply of this strategic product.

Mr Araman added, “This investment is part of our efforts to ensure sustainable LPG supply, supporting the growth of the market and guaranteeing safety for Tanzanians using LPG daily. The development of infrastructure is crucial for meeting the rising demand and we are committed to supporting this vision.” He further highlighted that, the LPG market in Tanzania has been growing strongly, with annual increases of around 17-18 per cent.

To sustain this growth, continuous investment in infrastructure is necessary to prevent shortages and ensure all consumers have access to clean energy solutions by 2034.