Manufacturers line up for natural gas

        Dar es Salaam. Demand for natural gas as the main source of energy among manufacturers and other users in Tanzania continues to rise, according to Tanzania Petroleum Development Corporation (TPDC).

TPDC says it has received new applications for industrial use, with at least ten manufacturers expected to switch to natural gas before the end of this year.

Thirty-seven of the 42 manufacturing companies currently connected to the natural gas distribution network have started to use this cheaper source of energy in their operations.

TPDC research officer Denice Byarushengo told The Citizen that manufacturers that had been connected, but which had not yet began using gas were Karibu Textile Mills, Lakhani Industries, Bakhressa Food Products, Bautech Company Ltd and Simba Steel Mills.

Non-manufacturing customers currently using natural gas include Keko Prison and Movenpick Hotel, both located in Dar es Salaam. About 70 homes in Mikocheni, Dar es Salaam, are also supplied with natural gas, which they use mainly for cooking and heating.

Mr Byarushengo said several more companies had shown interest in being supplied with gas.

“TPDC has been talking to potential customers who are interested in being connected. We are currently negotiating with at least five industrial customers, who may be connected any time from now.”

Mr Byarushengo added that there could be at least 47 manufacturers using natural gas by the end of this year.

He said plans were afoot to extend natural gas distribution in Dar es Salaam and several other regions through the Regional Gas Distribution Project starting this year.

“To start with, the project will cover Dar es Salaam, Mtwara, Lindi, coast, Dodoma, Morogoro and Tanga regions,” Mr Byarushengo said, adding that the project would be implemented in collaboration with private investors.

The biggest challenge in the project, however, will be securing the financial resources needed for setting up the relevant infrastructure.

The cost of connecting customers to supply networks depends on a number of factors, including the distance from the existing gas supply infrastructure (pipeline) and quantity of gas required.

Another factor is the type of customer (high, medium or low pressure), which determines the size and material of equipment required for connection. The use of natural gas in large-scale manufacturing is said to be more cost-effective than electricity.