State pushes LNG deal

INDIA: DEPUTY Prime Minister and Minister for Energy, Dr Doto Biteko has assured that the government is discussing tax incentives with investors to construct a 42 billion US dollar (about 109tri/-) liquefied natural gas (LNG) plant in the country.

Dr Biteko who is in India to attend the third annual Energy Week conference said the talks could be completed by June.

Equinor and Shell are joint operators of the country’s mega gas project, while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania’s national oil company TPDC are partners.

“The project hasn´t stopped, we are negotiating on the terms of how we can make the project viable for both of us,” said Dr Biteko.

He added that some government incentives would have to be given, and that the production volume depends on negotiations.

He added “I cannot say until we complete the negotiations, but I think the negotiations will be completed within this financial year, between now and June.”

The project would unlock 47.13 trillion cubic feet of natural gas deposits in the country. Dr Biteko added that the country is looking forward to launching an exploration licensing round for 26 oil and gas blocks next month.

Meanwhile, Dr Biteko has invited Indian companies to invest in Tanzania saying the country has good environment and favourable policies that support investment growth.

He encouraged Indian companies and investors to invest in various sectors including electricity, liquefied petroleum gas (LPG) distribution and bulk fuel procurement.

Dr Biteko was speaking to India’s Minister for Petroleum and Natural Gas, Hardeep Singh, during a discussion to explore opportunities for enhancing bilateral trade and investment in the energy sector. The conversation took place in New Delhi during the third annual Energy Week celebrations in India.

He highlighted the need for more competition in the fuel sector to ensure consistent availability.

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“Tanzania is committed to utilising all available resources to ensure a sufficient energy supply, including electricity, to meet the needs of its citizens,” Dr Biteko said.

He explained that for the energy projects to advance, there must be involvement of various stakeholders including the private sector.

He said Tanzania requires 12 billion US dollar to meet its energy needs and private sector participation is crucial to achieving this.

Dr Biteko welcomed Indian investors to explore opportunities in Tanzania’s energy sector. “are inviting Indian investors to venture in the energy sector in Tanzania, we have strong and favorable policies that promote investments,” he said.

He said the India’s Energy Week has provided valuable insights into the sector, facilitated knowledge exchange and promoted investment opportunities, including the development of oil and gas fields in Tanzania.

Minister Singh acknowledged the strong trade relationship between India and Tanzania, noting that the commercial ties between the two countries have been growing. He also insisted that India is keen to expand its business ties with Tanzania.

Mr Singh said there are plans to invest in the distribution of gas cylinders in Tanzania, especially as the country implements its National Clean Cooking Energy Strategy.

He said India has made considerable progress in distributing LPG cylinders, with a 99.9 per cent distribution rate among its population.

Moreover, India is looking to invest in oil and natural gas exploration. Indian companies are preparing to participate in the upcoming Fifth Round of Oil and Gas Block Auctions scheduled for March this year in Tanzania.

“We are also ready to invest in Liquefied Natural Gas (LNG), biofuels and collaborate with Tanzania on technical matters related to the energy sector by building capacity for Tanzanian professionals and facilitating a professional exchange programme between our countries,” Minister Singh said.

Mr Singh commended Tanzania for its significant progress in expanding electricity access, particularly in rural areas and for implementing its clean cooking energy strategy, which includes subsidizing LPG cylinders.

Furthermore, Minister Singh commended Dr Biteko for advocating for the development of untapped energy resources in Africa, such as coal, which if developed, could ensure energy security for the continent.

The discussions were attended by several key figures, including a member of the Permanent Parliamentary Committee on Energy and Minerals, representing the committee’s chairman, Mr Idd Kassim, the Commissioner for Electricity and Renewable Energy, Engineer Innocent Luoga and the Director General of the Energy and Water Utilities Regulatory Authority (EWURA), Dr James Andilile.