AUSTRALIAN INVESTORS EYE TANZANIA'S GAS INDUSTRY

Several Australian companies have shown interest to invest in the country's natural gas industry, says the Tanzania Investment Centre (TIC).

The Mtwara Gas Pipeline is expected to be inaugurated later this month and the facility will enable the country to produce 2800MW of power by 2016.

East Africa is now a new oil and gas frontier after a string of hydrocarbon discoveries, which producers hope to exploit to supply energy-hungry Asian markets. Tanzania estimates it has more than 55 trillion cubic feet (tcf) of natural gas.

TIC said "Australian companies are confident that they are well positioned to add value in Tanzania gas industry, given its significant experience, knowledge and capability."

The statement pointed out that an LNG industry has the capacity to transform the economy and in Australia it was able to create over 103,000 jobs during the last decade.

"Once operational these projects will create an estimated 1,159 jobs. TIC registers gas projects subject to approval of the Ministry of Minerals and Energy," the statement said.

The statement said the move by Australian investors to show interest follows invitation by President Jakaya Kikwete during his recent visit to Australia.

The statement quoted TIC Public Relations Manager, Mr Daudi Riganda, as saying TPDC and Australia based-company, Squire Patton Boggs hosted dinner for Mr Kikwete.

"President Kikwete used the platform to engage leaders in Australian energy and resources sector on the investment landscape in Tanzania," the statement observed.

TPDC has been designated as the national oil company with aspirations to continue to be involved in exploration and development activity within Tanzania and expand its reach internationally.

Mr Clare Pope, Partner in Energy and Natural Resources at Squire Patton Boggs, said Tanzania had taken many important steps to ensure the development of its oil and gas industry and participation by significant international oil and gas companies.

Mr Campbell Davidson, Managing Partner of Squire Patton Boggs in Sydney, said: "As we see continued growth in foreign direct investment in East Africa, we are working with a number of key energy clients in Asia-Pacific to ensure they can benefit from the strides being made in the energy sector."

Between March 2007 and March 2017 TIC registered 35 projects from Australia, worth US $1,163 million. Once operational these projects will create an estimated 1,159 jobs.

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