Energy projects across Tanzania

Energy projects across Tanzania

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Mtwara to handle fuel destined for southern Tanzania


Monday September 3 2018



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Tanga port. The port will no longer handle petroleum products going to southern Tanzania. FILE PHOTO Tanga port
In Summary

  • The southern port of Mtwara will take over handling imported petroleum products to areas far from Dar and Tanga, according to a new directive by the Energy and Water Utilities Regulatory Authority (Ewura).
  • Ewura wants bulk petroleum importers and suppliers to use Mtwara Port, after its endorsement as the third fuel-receiving facility.
  • The decision, the government said, was meant to minimise the cost of doing business, as well as decongest the Tanzania-Zambia highway.
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By APOLINARI TAIRO
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The Dar es Salaam and Tanga ports will no longer handle fuel destined for southern Tanzania, as the government moves to minimise fuel prices and the cost of doing business in the region.

The southern port of Mtwara will take over handling imported petroleum products to areas far from Dar and Tanga, according to a new directive by the Energy and Water Utilities Regulatory Authority (Ewura).

Ewura wants bulk petroleum importers and suppliers to use Mtwara Port, after its endorsement as the third fuel-receiving facility.

The decision, the government said, was meant to minimise the cost of doing business, as well as decongest the Tanzania-Zambia highway.

The regulator told The EastAfrican that it has been issuing monthly price caps for Mtwara and Ruvuma regions since July, for products offloaded at the Mtwara Port.

The agency said the decision was prompted by “unhealthy business practices in Mtwara and Ruvuma.”

Ewura added that all fuel suppliers should ensure that petroleum products for Mtwara and Ruvuma regions were only sourced from Mtwara Port.

Communications manager Titus Kaguo said that companies failing to comply with the Authority’s directive will be liable to a fine not less than Tsh100 million ($50,000) or equivalent court punishment under Section 238 of the Petroleum Act, Cap. 392.

“The Authority will closely monitor the situation of fuel supply in Tanzania to ensure that interests of all stakeholders including the consumers, wholesalers, retailers and the government are well protected,” Mr Kaguo said.

Storage facility
The government directed bulk oil importers and suppliers to construct an oil storage facility at Mtwara after opening the port for handling petroleum products last month.

With a capacity to offload 38,000 tonnes of oil, the facility is expected to supply petroleum products to Mtwara, Lindi, Ruvuma and other neighbouring areas.

The port’s installed storage facility is 25,000 tonnes.

Tanzania imported about 5.4 million tonnes of petroleum products last year through Dar es Salaam and Tanga ports through the Bulk Procurement System (BPS).

Ewura introduced a tendering process through the BPS for petroleum importation in Tanzania.

Purchases are made from a pool of imports obtained from suppliers selected through a competitive bidding process.

The BPS covers all grades of petroleum products imports, and also establishes a database of consumption trends to get the best price on the world market and guarantee quality of imported products.

The Petroleum Bulk Procurement Agency (PBPA) prequalifies suppliers every year, who are eligible to bid for the supply of petroleum products.

The Agency issues a notice to oil marketing companies looking for tenders to supply the product.

Foreign companies are required to register locally within the country to qualify for inclusion in the bidding process for announced tenders.

The firms submit bids for each petroleum product separately.

In the previous system, a single firm would be awarded a tender to import all petroleum products.

Mtwara to handle fuel destined for southern Tanzania
 
Hydro-power as cheap source of electricity compared to gas
ippmedia.com/en/business/hydro-power-cheap-source-electricity-compared-gas

September 4, 2018
Energy Minister, Dr Medard Kalemani said in Dar es Salaam last week that generation of a single megawatt of hydro power costs U$1million (over 2.2bn/-) while for natural gas it fetches U$1.2million (over 2.8bn/-).
Dr Kalemani further argued that production of a single unit of hydro power costs 36/- while the price reaches 136/- for natural gas. “So, in terms of cost of production, water is cheaper than gas but in terms of reliability, electricity from natural gas much better and especially for powering industries,” the Energy Minister noted.
Dr Kalemani dismissed critics of the 2,100MW Rufiji Hydro-power project at Stiegler’s Gorge who faults government for abandoning a much reliable and cheaper source of electricity in natural gas as being unrealistic.
“The government’s plan in favour of natural gas use for both industrial and domestic needs, is allocated an estimated budget of 8.8trn/- for the next five years and so far we have already injected 25 percent of the allocation,” the Minister noted.
He mentioned some of the natural gas to power projects which are under way Kinyerezi III, Somanga Fungu and Mtwara. “We need 3.2 trillion cubic feet of gas to meet demand of power by manufacturing industries and another 1.2 trillion cubic feet to power households,” Dr Kalemani noted.
With the country’s proven natural gas reserves standing at 57 trillion cubic feet, power generation from the commodity is set to grow from 1,501MW in 2015 to 4,915MW in 2040, according to the country’s power master plan.
Minister Kalemani said his Ministry through its agencies has since last May started distribution of natural gas to households and factories in Dar es Salaam, Lindi and Mtwara with 1,000 households being targeted in Dar es Salaam by end next year.
According to him, generation of electricity from both natural gas and water are of crucial importance and should be implemented concurrently to ensure that the country’s industrialization agenda which needs reliable power supply.
“Up to last December we had reached only 70 households that were powered by natural gas generated electricity but up to July this year we had connected another 110 new households and the number growing. The idea is to discourage use of biomass such charcoal in the city,” he added. In Mtwara, 250 households have been connected to electricity generated from natural gas.
Dr Kalemani also pointed out that gas has already started being used to power motor vehicles in Dar es Salaam through two gas stations at Dar es Salaam Institute of Technology and University of Dar es Salaam main campus where configuration of the cars’ systems is done.
“A total of 112 cars in Dar es Salaam have up to July this year been configured to use natural gas and we are expanding to Arusha, Dodoma and Mwanza cities,” Dr Kalemani added saying the country has plenty of gas to use in powering cars and industrial plants.
According to Energy and Water Utilities Regulatory Authority’s annual report for the year ended June 2017, stated that during the period, the overall gas production from Songo Songo Island in Lindi and Mnazi Bay in Mtwara was 48,633 million standard cubic feet compared to 44.363MMscf in the previous year.
“This increase in gas production was prompted by Tanesco reliance on natural gas in electricity generation,” the EWURA report stated. It added that during the same period, Mnazi Bay gas field increased its production to 809.99 MMscf compared to 708.99 MMscf recorded in the previous year.
 
Tanzania to switch to natural gas-powered buses
TUESDAY SEPTEMBER 18 2018




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Rapid transit bus in Dar es Salaam. The project, one of its kind in East Africa, is expected to transform mobility and accessibility in the city. FILE PHOTO | NMG
In Summary
  • Tanzania Petroleum Development Corporation (TPDC) acting director-general, Mr Kapuulya Musomba, says the entire project will see at least 800 buses switch to natural gas.
  • Government says it will partner with fuel stations to distribute natural gas.

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By The EastAfrican
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Tanzania plans to shift to natural gas-powered buses on its rapid transit routes in Dar es Salaam, a move it says will cut fuel use by up to 50 per cent.
The Tanzania Petroleum Development Corporation (TPDC) acting director-general, Mr Kapuulya Musomba, says the entire project will see at least 800 buses switch to natural gas.

“The University of Dar es Salaam and Dar es Salaam Institute of Technology are ready to install the natural gas systems on the vehicles,” he said.

Dar es Salaam Rapid Transit (Dart) chief executive, Mr Ronald Lwakatare, said the system is available to all including private transport operators.
To install the system, a vehicle owner requires between Tsh1.6 million ($700) and Tsh2 million ($875) depending on the size of the vehicle.

“Experts have told us that the use of natural gas would save between 30 to 50 per cent of what one spends on fuel. We therefore agreed that all Dart buses should use natural gas. This will also help cut fares significantly,” Mr Musomba said.

Dart project
Mr Musomba also said that the Dart phase two project is underway.
Phase two runs on the southeast part of the city, a total of 19.3km. It includes procurement of buses and the fare collection system. More than 100 trunk buses with a capacity of 140 passengers will provide both normal (stopping at all stations) and express services (stopping only at connector stations).

Inaugurated in 2015, the first phase of the project comprises 25km of special roads connecting the suburbs to the central business district.

The entire project has six phases which, upon completion in 2035, will benefit 90 per cent of Dar es Salaam residents.

Filling stations
Mr Ben Kisisiwe, a Dar es Salaam resident, says he converted his vehicle from petrol to natural gas and currently spends about Tsh10,000 ($4.38) per trip, saving at least Tsh20,000 ($8.76).
However, he said that with only a single filling station in the city, he sometimes finds it difficult to use his vehicle, calling upon TPDC to increase the number of filling centres which should be operational for 24 hours.

To address this challenge the government will partner with fuel stations to distribute natural gas.
“We plan to use fuel filling stations to distribute natural gas. This means motorists will be able to refill at any nearby petrol station,” Mr Musomba said, noting a deal has already been struck with Camel and Oilcom.

He added that TPDC will build the main natural gas distribution centre at the University of Dar es Salaam.
-Reporting by The Citizen

Tanzania to switch to natural gas-powered buses
 
The United Republic of Tanzania Signs its Fourth Country Programme Framework (CPF) for 2018–2022


17 Sep 2018


James Alex Msekela, Ambassador, Permanent Representative, Permanent Mission of the United Republic of Tanzania, and Mr Dazhu Yang, IAEA Deputy Director General and Head of the Department of Technical Cooperation, signed the United Republic of Tanzania’s Country Programme Framework (CPF) for the period of 2018–2022 on 17 September 2018. (photo E.Cody/IAEA)
James Alex Msekela, Ambassador, Permanent Representative, Permanent Mission of the United Republic of Tanzania, and Mr Dazhu Yang, IAEA Deputy Director General and Head of the Department of Technical Cooperation, signed the United Republic of Tanzania’s Country Programme Framework (CPF) for the period of 2018–2022 on 17 September 2018. A CPF is the frame of reference for the medium-term planning of technical cooperation between a Member State and the IAEA and identifies priority areas where the transfer of nuclear technology and technical cooperation resources will be directed to support national development goals.
The United Republic of Tanzania has been an IAEA Member State since 1976. Its 2018–2022 CPF identifies seven priority areas:
  1. Nuclear radiation safety and security
  2. Food and agriculture
  3. Health and nutrition
  4. Water resource management
  5. Energy planning
  6. Industrial applications
  7. Human resources capacity building
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James Alex Msekela, Ambassador, Permanent Representative, Permanent Mission of the United Republic of Tanzania, and Mr Dazhu Yang, IAEA Deputy Director General and Head of the Department of Technical Cooperation, signing the United Republic of Tanzania’s Country Programme Framework (CPF) for the period of 2018–2022 on 17 September 2018. (photo E.Cody/IAEA)

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The United Republic of Tanzania delegation and IAEA staff. (photo E.Cody/IAEA)

The United Republic of Tanzania Signs its Fourth Country Programme Framework (CPF) for 2018–2022
 
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KIBO Energy said it would clarify whether a call for tenders by Tanzania’s TANESCO for independent power producers (IPPs) to provide “superior coal technology and integrated gasification combined cycle power plants” affected its own project with the utility.

Kibo is currently negotiating a power purchase agreement with TANESCO with coal-fired power supplied by its Mbeya Coal to Power Project (MCPP), a 300MW enterprise. Talks with the Tanzanians are far progressed but business conditions in the country are volatile.

Louis Coetzee, CEO of Kibo Energy, said in an announcement to the Johannesburg Stock Exchange that his initial impression of the announcement is that it would provide additional opportunities for the firm, rather than imperil the current one.

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“Our initial assessment of this latest tender process seems to indicate additional opportunity to expand the company’s participation in the development of the Tanzania energy sector and we will now urgently consult with our partners to ascertain the best course of action,” said Coetzee in an announcement.

Kibo to mull further opportunities in Tanzania after utility's tender call - Miningmx
 
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