TPDC, PAET in Songo Songo licence talks

DODOMA: THE Government Negotiation Team (GNT) is currently in discussions with Pan African Energy Tanzania (PAET) over the possibility of extending the second phase of the natural gas development licence in the Songo Songo Block.

Deputy Minister for Energy, Ms Salome Makamba told the National Assembly yesterday that the government has initiated the talks as the current licence is expected to expire in October 2026.

She was responding to a basic question from Kilwa South MP (CCM), Hasnain Dewji who sought clarification on the number of natural gas wells drilled so far in Songo Songo Island and the government’s plans to increase gas production.

Responding, Ms Makamba said the Songo Songo Block currently has 12 wells, of which the government, through the Tanzania Petroleum Development Corporation (TPDC), drilled nine while PAET drilled three. The Deputy Minister said that the Songo Songo Block continues to produce natural gas at an average of 84.7 million standard cubic feet per day (mmscfd), depending on demand.

“Once the negotiations are completed, TPDC and PAET will continue with plans to drill more wells,” she said.

In his supplementary questions, the lawmaker asked why royalty payments expected by Kilwa District Council since 2019 had not yet been received, noting that even the respective village had not received its 20 per cent share.

In his second supplementary question, the legislator raised concerns over acute water shortages on Songo Songo Island, saying the island’s rocky terrain makes access to water difficult despite heavy investments in the area.

In response, the Deputy Minister commended the MP for closely following how natural gas resources could benefit citizens in his constituency. Ms Makamba explained that councils have been benefiting through Corporate Social Responsibility (CSR) funds generated from investments in their respective areas and that agreements on CSR payments have been implemented for three consecutive years.

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“As it is your right as a representative of the people to access this information, I am directing officials from the ministry to provide me with a detailed breakdown of CSR payments made in your area,” she said.

The Deputy Minister added that once TPDC submits the funds to the council, the council becomes responsible for distributing them to villages. On the issue of water, she explained that TPDC has drilled a borehole as part of its CSR activities but acknowledged that the existing water pump is too small to meet demand.

“The government has allocated 400m/- for installation of a new pump so that water production can exceed 100,000 litres,” she explained.

Ms Makamba stressed that the government’s intention is to ensure citizens benefit from the country’s natural resources through continued investment in community projects supported by revenues from natural gas. Meanwhile, Special Seats MP (CCM), Ms Najma Giga, questioned why the long-awaited natural gas project has yet to be fully implemented despite its anticipated significant contribution to the national economy.

Responding, the Deputy Minister said the project had reached its final stages, noting that during the Ministry of Energy’s budget debate, the government had already engaged investors involved in the project and was now finalising the remaining legal procedures before production begins.

“We strongly wish to see this project implemented because we recognise it as a strategic initiative that will bring significant transformation to the gas sector and spur development in the southern regions,” she said.