Tanzania Oil & Gas

5bn/- for LNG project compensation

EXECUTION of the Liquefied Natural Gas (LNG) project remains on the right track and is expected to commence in fiveyear period, Energy Minister Dr Medard Kalemani has assured.

He told Lindi residents here yesterday that 5.1bn/- has already been set aside for compensation of residents whom the project execution will affect in Likon’go Mto Mkavu in Lindi municipality.

The minister was speaking to Lindi legislators, regional and district authorities,international companies of BG, Shell, Equinor Tanzania and Tanzania Petroleum Development Corporation (TPDC).

He said discussions with investors were progressing well to ensure a win-win deal for all parties. “So far evaluation of the project and selection of concept on production and transportation of gas from the deep sea to the mainland have been completed,” stated the minister.

Over 2,000 hectares for construction of the LNG plant at Likong’o are allocated for the project, which is located close to large offshore natural gas discoveries.

Tanzania has a natural gas resource estimated at 57 trillion cubic feet (tcf) onshore and deep sea. It already uses some of the gas to generate electricity and to power industries like cement manufacturing, steel, textile mills and beer brewing.

Dr Kalemani noted that out of the country’s gas reserves, 10tcf are for the LNG plant, 1tcf will be supplied to homes, 4.6tcf for petrochemical and fertiliser industries, 9.1tcf for generation of electricity and 3.8tcf are for supply to various industries.

TPDC Managing Director Kapuulya Musomba said investors were still keen to invest and implement the project contrary to some false information being circulated.

He said currently there were discussions going on between the government and investors on the natural gas blocks. The planned new infrastructure will enable the country to export some of the huge offshore gas reserves.

DODOMA District CCM Political Committee members are satisfied ...

Author: KENNEDY KISULA in Lindi

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