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Canadian firm eyes Tanzania with $420 million gas-to-liquid plant
Representatives of Rocky Mountain GTL visited Tanzania last month and met with government officials to discuss investment opportunities. PHOTO | COURTESY
What you need to know:
- The processing plant is also expected to produce naphtha – the main ingredient used to lighten heavy oil in pipelines – and other by-products such as hydrogen fuel, which is in high demand in developed countries.
Dar es Salaam. A Canadian firm plans to build in Tanzania a $420 million plant that will produce diesel and jet fuel from natural gas.
Representatives of Rocky Mountain GTL visited Tanzania last month and met with government officials to discuss investment opportunities.
The firm specialises in designing, constructing and operating plants that convert natural gas and natural gas liquids into synthetic diesel and jet fuel.
The processing plant is also expected to produce naphtha – the main ingredient used to lighten heavy oil in pipelines – and other by-products such as hydrogen fuel, which is in high demand in developed countries.
The company’s local partner, Memnon Project Management Services Tanzania (MPMS), said last month’s high-level meetings resulted in an agreement to share detailed information.
“They have agreed to share detailed information regarding the market and gas resources now and in the future, as well as conduct a feasibility study that will lead to the construction of the plant,” MPMS country representative Jackson Pemba said.
“Once the project is up and running, Rocky Mountain GTL’s technology will supply Tanzania with diesel and jet fuel and will also be able to produce naphtha,” he added.
According to initial plans, the plant is expected to be completed within two years and will at first produce 2,500 barrels of fuel per day.
Tanzania currently boasts 57.54 trillion cubic feet of natural gas reserves located both onshore and in the Indian Ocean.
The gas is currently used to generate electricity and is supplied to some manufacturing facilities. Plans are also afoot to supply homes with natural gas for domestic use.
The government is also in talks with potential investors to develop a vast complex that will produce liquefied natural gas for export.
The envisaged plant that will convert natural gas into diesel and jet fuel is the newest plan that seeks to exploit the potential of the natural gas found in Tanzania.
“This is a big project that will not only create jobs, but also contribute to speeding up development for Tanzanians,” Mr Pemba said, adding that it will save a significant sum of foreign currency used to import fuel.
“Through this project, Tanzania will be the first country in Africa to sell jet fuel and diesel to neighbouring countries. This is a significant step that will also lower the prices of these two important sources of energy.”
