Two factories to be connected to natural gas, cut down costs
What you need to know:
- The new customers include Chemicotex and White Sands Hotel that are set to be connected to the system through the first phase of the natural gas pipeline from Mwenge to Mbezi Beach carried out by the Tanzania Petroleum Development Corporation (TPDC)
Dar es Salaam. The cost of production and operation at two factories and a hotel is expected to be cut down by between 30 and 50 percent once connected to the natural gas system by August, 2023.
The new customers include Chemicotex and White Sands Hotel that are set to be connected to the system through the first phase of the natural gas pipeline from Mwenge to Mbezi Beach carried out by the Tanzania Petroleum Development Corporation (TPDC).
Currently, 53 factories and institutions use natural gas for production while a total of 1514 households in Dar es Salaam and Mtwara have already been connected with gas system for domestic use.
Speaking to journalists yesterday, Chemicotex factory secretary Mr Rani Billiam said the use of natural gas will reduce the operational costs of the factory by almost 50 percent.
He said that previously they were relying on energy from abroad including crude oil in operation which was costing them a lot of money.
“There were many things, transportation, the availability of relevant energy to reach the factory, but now with the availability of gas, it is certain that the costs will drop.”
According to him, previously, they were using 1,000 liters of crude fuel per day in the operation of plants to produce various products and now the plants will be operated by natural gas, adding its plan to make the use of natural gas permanent by converting their vehicles as well.
On the other hand, the TPDC Mwenge-Mbezi Beach gas project, project manager Ms Eva Swila, said in the first phase, two factories and six hotels will be connected.
She said the government through TPDC is continuing with the construction of a 12.4 km long natural gas supply pipeline from Mwenge to Mbezi Beach via Bagamoyo road where by April 2023 the construction had reached 44.2 percent and is expected to be completed in June 2023.
In terms of natural gas production, she said it has increased to 68.02 billion cubic feet compared to 59.96 billion cubic feet for the same period in 2021/22, equivalent to an increase of 13 percent.
Meanwhile, White Sands Hotel operations manager Mr Ali Hilika said the use of natural gas will help management to identify the cost they spend in running the hotel in terms of energy.
