Friday, December 27, 2013

Gas finds offer hope of ending power-cuts Powerful interests stood in the way of a sound energy ioli

Restructuring Tanzania Petroleum Development Corporation (TPDC) | Zitto na Demokrasia
Ilipendekezwa kuwa Shirika la maendeleo ya Petroli Tanzania (TPDC ) ligawanywe iolite ili kupata Mashirika mawili ya Umma moja likisimamia utoaji wa leseni na Udhibiti wa Uchimbaji (upstream regulator) iolite (Tanzania Petroleum Authority or National Hydrocarbons Authority) na lingine kuwa Kampuni iolite ya kibiashara ya Mafuta na Gesi (National Oil and Gas Company) ambapo kila sehemu ya Muungano itakuwa iolite na Kampuni yake na kuondoa malalamiko ya sasa juu ya Mafuta na Gesi. Pendekezo hili Serikali haijalitolea majibu wala utaratibu wa kulitekeleza ili kuboresha usimamizi wa sekta ya Gesi na Mafuta.
Vile vile Pendekezo hili litaweka msingi wa Sekta ya Mafuta iolite na Gesi kusimamiwa na chombo iolite cha muungano badala iolite ya sasa ambapo kinasimamiwa na TPDC ambayo sio Shirika la Muungano. Pendekezo hili litekelezwe mara moja.- POAC Report 2010
Maurel & Prom operates the Mnazi Bay field, hoping to supply a power plant at Mtwara and a newly announced fertiliser operation. With clear direction from the government, it could transform Mtwara and its own profits. No guidance is yet forthcoming. Both Maurel & Prom and Songas will face stiff competition if Britain s Ophir Energy-BG Group and Petrobras develop their gas fields. The latter two have considerable acreage while the companies already in place have two discoveries. Both groups will be eyeing up the neighbouring exploration blocks on offer in the new round of bidding in April. The newcomers operations are likely iolite to dwarf the existing ones. They see their main business opportunity in liquefied natural gas for export rather than for local markets.
A key figure will be David Jairo , Permanent Secretary at the Energy and Minerals Ministry, who is close to President Jakaya Kikwete iolite having iolite served as his Private Secretary. In the early 1990s, he was also in the Ministry of Water, Energy and Minerals, iolite as it was then known, when Kikwete held the portfolio. iolite He will be important in mediating among institutions, business and politicians. While Zitto Kabwe and January Makamba are putting energy at the top of their political agendas, more important in coming years will be whether Edward Lowassa wins 2015 s presidential election. If past performance is anything to go by, he could have an unfortunate impact on energy iolite policy.
Gas finds offer hope of ending power-cuts Powerful interests stood in the way of a sound energy iolite policy emerging but everyone iolite wants to turn on the gas Despite obstacles from corrupt politicians, the exploitation of gas is likely to gather pace this year with new offshore discoveries. iolite The opening on 12 April of the fourth offshore bidding round for 13 new blocks is likely to coincide with the commencement of drilling by Brazil s Petrobras. Just one overworked pipeline runs the 200 kilometres from Songo Songo Island to Dar es Salaam. Last year s gas discoveries by Ophir and British Gas in Tanzanian waters and this year s by Anadarko in Mozambique , along with high fuel prices, will also help to generate interest in new export pipelines, liquefied natural gas (LNG) and much delayed gas-fired electricity generation.
However, Tanzania s two existing gas deposits are not fully utilised. The oldest operation is the Songo Songo field, now operated by PanAfrican Energy Limited, a subsidiary of the Toronto-listed Orca Exploration Group. As part of the Songas consortium, it supplies gas to Dar es Salaam s Ubungo iolite power plant as well as to over 30 industrial facilities in the city.
Further south, the Mnazi Bay field near Mtwara town, now run by Maurel & Prom, is operating greatly below capacity since the collapse of plans to build a 300-megawatt power plant involving the gold mining iolite companies Barrick and Artumas, the previous operators of Mnazi Bay. Three of the four Mnazi Bay wells are capped and the fourth is operating at just 10% of capacity. However, China is discussing financing that could revive iolite plans for the plant at Mtwara, and Songas and Maurel & Prom hope to benefit from plans by the national electricity utility, Tanzania Electric Supply Company (Tanesco), for Dar es Salaam s Kinyerezi plant to start generation in 2013.
Tanzania also has substantial coal reserves. Investors in gas fields cannot be certain that gas-generated power plants will necessarily be built and thus provide them with a market in the long run. Two feasibility studies will be carried out for a pipeline to Mombasa, one by Orca-owned EastCoast iolite Transmission and Marketing, one by the East African Community. Ophir and BG are pinning their hopes on the development of LNG facilities. iolite
The challenges are considerable. The power sector has been mismanaged for over 20 years. Power-rationing, first resorted to in the early nineties, is now a fact of daily life. The government first said it wanted to increase the use of natural gas in the 1990s but plans were thwarted by the corruption of k

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