What TPDC, Egyptian firm’s natural gas distribution deal means to Tanzania

Dar es Salaam. To accelerate the increased use of clean cooking energy, the Tanzania Petroleum Development Corporation (TPDC) and Rosetta Energy Solutions of Egypt have struck a deal aimed at improving the distribution of natural gas in the country.

Under the agreement known as the Head of Terms (HoT), the project will involve the use of the mini-liquefied Liquefied Natural Gas (LNG) technology, whereby the natural gas will be supplied through special tanks to industries, households, and gas stations.

TPDC believes that the mini LNG project is cheaper; it will significantly expedite delivery and therefore benefit industries, households, and vehicles in the said regions.

The agreement signed by TDPC and Rosetta Energy Solutions on May 17, 2024, comes a few days after President Samia Suluhu Hassan launched a strategy seeking a smooth and accelerated transition to clean cooking energy.

Mini LNG refers to the direct use of LNG in its liquid form, as opposed to the conventional scheme of regasification and injecting it into the gas transmission network from an LNG terminal.

TPDC director general, Mussa Makame, said during the event that the project will deliver natural gas to Tanga, Mwanza, Mbeya, Iringa, Shinyanga, Morogoro, Dodoma, and Arusha regions in the next two and a half years.

“Large stations equipped with pipeline systems will be built in the said regions for distribution purposes in the cities and in peripheral areas. This will allow residents to transition from dirty cooking to clean energy,” he said.

He said under the agreement, TPDC will own 30 percent of shares, while Rosetta Energy Solutions and Africa 50 will hold 44 percent and 26 percent, respectively.

Rosetta Managing Director, Karim Shaaban, said the project plays a critical role in expanding Tanzania’s gas pipeline network by enabling scalable demand through movable and modular LNG solutions.

With a target investment portfolio of more than $100 million, Mr Shaaban said they are focused on transferring knowledge and expertise to Tanzanians.

The acting Permanent Secretary in ministry of Energy, Dr James Andilile, said the new project will expand the gas supply in the country and that the regions not having gas pipelines will be reached through the mini LNG project.

“The government is committed to supporting investors and ensuring that the project becomes successful as planned,” Dr Andilile, who doubles as the Energy and Water Utility Regulatory Authority (Ewura) Director General, said.