Rosetta Energy Solutions, TPDC Ink Deal to Boost Natural Gas Distribution in Tanzania

Rosetta Energy Solutions, TPDC Ink Deal to Boost Natural Gas Distribution in Tanzania

Tanzania is set to improve access to clean cooking fuel with a new project utilizing mini-liquefied natural gas (LNG) technology. The Tanzania Petroleum Development Corporation (TPDC) signed a Head of Terms (HoT) agreement with Rosetta Energy Solutions of Egypt to spearhead this initiative.

This collaboration, reported by The Citizen,  aims to expedite natural gas distribution across Tanzania, particularly in regions lacking pipeline infrastructure. Mini-LNG uses specially designed tanks to deliver liquefied natural gas directly to industries, households, and gas stations.

According to TPDC, this approach offers several advantages. Mini-LNG is considered a more cost-effective solution and allows for quicker implementation compared to traditional pipeline networks. This project aligns with President Samia Suluhu Hassan’s recent strategy to facilitate a swift transition towards clean cooking energy sources.

The agreement, signed on May 17th, 2024, outlines a two-and-a-half-year timeframe for delivering natural gas to eight key regions: Tanga, Mwanza, Mbeya, Iringa, Shinyanga, Morogoro, Dodoma, and Arusha.

“Large stations equipped with pipeline systems will be built for distribution within these cities and surrounding areas,” stated TPDC Director General Mussa Makame. “This will empower residents to switch from unclean cooking methods to cleaner energy.”

The ownership structure of the project divides shares amongst the involved parties: TPDC holds 30%, Rosetta Energy Solutions holds 44%, and Africa 50 holds the remaining 26%.

“This project serves a critical role in expanding Tanzania’s gas network by enabling scalable demand through mobile and modular LNG solutions,” explained Rosetta Managing Director Karim Shaaban. “With an investment target exceeding $100 million, we prioritize knowledge transfer and expertise sharing with Tanzanians.”

The involvement of the Tanzanian government is emphasized by Dr. James Andilile, Acting Permanent Secretary in the Ministry of Energy and Director General of the Energy and Water Utility Regulatory Authority (Ewura). “This project will significantly expand gas supply throughout the country, particularly in regions lacking pipelines. The government remains committed to supporting investors and ensuring the project’s success,” Dr. Andilile remarked.

This initiative presents a promising step towards cleaner cooking options and wider natural gas accessibility in Tanzania.

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Ihab shaarawy 86 Posts

Ihab Shaarawy is the Managing Editor of Egypt Oil & Gas Newspaper, a position he has held for the past five years. With a distinguished career spanning over two decades, Ihab has garnered extensive experience across various prominent newspapers and news agencies.

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