Govt to fast-track Ntorya gas extraction

TANZANIA: THE government is committed to fast-tracking the extraction of the newly discovered natural gas deposit in the Ntorya area, which holds an estimated 1.6 trillion cubic feet of gas.

This initiative aims to significantly boost electricity generation for vehicles, households and industrial use.

This effort aligns with the National Development Vision 2025, which identifies the energy sector as crucial for supporting manufacturing, transportation, trade and other socio-economic activities.

According to Vision 2025, the sector must be strategically enhanced through improvements in electricity generation, transmission, distribution, interconnection, power trading, rural electrification and the acceleration of petroleum and gas activities across the upstream, midstream and downstream sectors.

Additionally, the vision emphasises creating a favourable environment for private sector investments.

During the license handover ceremony for the Ntorya gas development project yesterday in Mtwara Region, Deputy Prime Minister and Minister for Energy, Dr Doto Biteko, highlighted the government’s commitment to integrating the gas economy with the improvement of citizens’ livelihoods.

“The government’s efforts to increase electricity generation from natural gas are in line with our goal of connecting local communities with power,” Dr Biteko said.

He noted that the license handover represents the government’s dedication to ensuring that the country’s resources, including natural gas, benefit its citizens.

Dr Biteko mentioned that President Dr Samia Suluhu Hassan has been a driving force behind the gas exploitation initiative.

“For the first time under this government, we are set to extract substantial quantities of gas,” he added. The last gas development license was issued in 2006.

Dr Biteko also announced that the license marks the beginning of gas exploitation at wells one and two within the Ntorya deposit. To further strengthen electricity availability in Mtwara Region, the government plans to construct a gas power plant with a capacity of over 300 megawatts.

The gas exploitation at Ntorya will be managed by the Tanzania Petroleum Development Corporation (TPDC) in partnership with ARA Petroleum, an Oman-based firm.

Permanent Secretary of the Ministry of Energy, Engineer Felchesmi Mramba, emphasised that intensive investment in gas exploitation will significantly improve the country’s energy mix and promote sustainable economic growth.

Currently, natural gas accounts for 40 per cent of the country’s electricity generation, with the remainder coming from other sources such as hydro and solar power. The fully exploited Ntorya area is expected to produce 60 million cubic feet of gas per day, potentially increasing to 140 million cubic feet within three years.

Mramba highlighted that increased use of natural gas would contribute to environmental conservation and support global efforts to reduce carbon emissions.

“The discovery of gas has been pivotal in accelerating sustainable economic growth, environmental conservation and strengthening energy security,” he said.

Reflecting on Tanzania’s journey in discovering natural gas, Mramba noted that the first significant discovery occurred in the 1970s at Songongo Islands.

The major breakthrough came in 2010, with a significant find of 47.13 trillion cubic feet of gas in the ocean, followed by an additional 10.41 trillion cubic feet discovered on the Tanzanian mainland that same year. Overall, Tanzania has discovered a total of 57.54 trillion cubic feet of gas.

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TPDC’s Managing Director, Mr Mussa Makame, said that the Ntorya project began in 2005 with a Production Sharing Agreement (PSA) between TPDC and Ndovu Resources Limited, followed by exploratory drilling.

The successful discovery of gas wells one in 2012 and wells two in 2017 represents a significant milestone in implementing Vision 2025, which calls for strengthening oil and natural gas availability through enhanced exploration and development activities.

Mr Makame said that the Ntorya area, located in Mtwara, is rich in gas, with 1.6 trillion cubic feet already discovered and confirmed.

The project is currently managed by TPDC in collaboration with ARA Petroleum, following the sale of Ndovu Resource Limited’s shares to ARA Petroleum in 2020.

Looking ahead, Mr Makame noted that the government plans to begin extracting gas from a third well in the next fiscal year (2024/2025), while accelerating production from the already confirmed wells.

“TPDC is eager to see the discovered natural gas begin to be exploited as soon as possible,” he said.

He also noted that the gas project will have significant economic impacts, including powering vehicles, households and industries, and providing employment opportunities, thereby boosting per capita income and national gross income.