| Bill on gas sector regulation ‘almost ready’ | Send to a friend |
| Tuesday, 21 February 2012 20:47 |
 By Frank Kimboy,The Citizen Reporter Dar es Salaam. Finishing touches are being put on a Bill scheduled for tabling in Parliament’s session in April, as the curtain raiser for enactment of an Act for regulating the gas sector. Confirmation to that end was given by Energy and Minerals minister William Ngeleja, whose communication with The Citizen in an exclusive telephone interview yesterday, was in response to concerns raised by Ubungo MP John Mnyika. Mr. Mnyika, who doubles as the ministry’s shadow minister, had earlier appealed to the President to stop signing gas exploration contracts until a gas policy was issued. Mr. Ngeleja said that officials at his ministry were working round the clock to finalise the draft bill which would, among other provisions, spell out regulations for the government’s firm control of the industry. Under the setting, he said, the government would oversee operations of the natural gas industry chain covering exploration, production and marketing. In his remarks on the issue – contained in a statement he had circulated to media outlets ‑ Mr Mnyika had also asked the government not to strike contracts with gas and oil exploration firms without involving Parliament. Minister Ngeleja elaborated: “It is true that we don’t have natural gas regulations, and that we are currently operating under the energy policy; but things will soon change as we will be tabling a bill to enact the said regulations in the next Bunge session.” He added that since parliament embodied representation of wananchi, it was important that the parliamentary committee on energy and minerals be involved, because contracts related to the sector touched public interests. Mr Ngeleja however played down Mr Mnyika’s concerns, noting that his ministry was working within the confines of the existing laws, and remarked: “We will not stop entering into contracts with those who want to invest in the energy sector because we are not doing anything wrong,” he said. On MPs’ involvement in drafting the contracts, Mr Ngeleja said there was no law that compels the ministry to involve legislators in crafting contracts between the government and investors. The minister reassured MPs that gas contracts were not shrouded in mystery, and that they were free to access documents related to them, so long as they followed the required procedures. “The laws are clear ; if an MP wants to see a certain contract, the legislator can submit a request to a specific minister through the Speaker of the National Assembly,” he noted. Mr Mnyika’s statement had been circulated one day after it had transpired that the government , and an Australia-based company, Swala Energy, had signed an oil and gas exploration contract. Swala’s entry brings to 26, the number of fuel exploration licences issued by Tanzania ‑ the highest in the Eastern African region. Encouraged by previous commercial gas discoveries in Songosongo and Mnazi Bay in the Ruvuma basin in the south of the country, companies have been attracted to invest massively in exploration activities. About 3.5 trillion cubic feet of gas reserves have already been commercialised with natural gas wells being drilled in Songo Songo and Mnazi Bay gas fields. Gas that is produced is transported to Dar es Salaam through a pipeline, and is used to generate electricity and as fuel in factories. Experts estimate that Tanzania will confirm around 60 trillion cubic feet of natural gas in the next five years, which would bring in thousands of billions of dollars in investments from the current 7 trillion cubic feets. Some of the firms which are exploring oil and gas in the country are France-based Maurel et Prom (Mafia and Mnazi bay), Australia- based Ndovu Resources (Mtwara and Lindi), UK firm- based Pan African Energy (Songosongo), Dominion Oil gas (Block 7 in dep sea) and Petrodel Oin and Gas (Dar es Salaam). Add this page to your favorite Social Bookmarking websites           |
| Last Updated on Wednesday, 22 February 2012 11:20 |
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