Is Tanzania ready to be an oil and gas economy?
6 March 2012
Africa Review - March 5, 2012
Among the current economic news in Tanzania is the announcements of oil and gas discoveries in various parts of the country. The latest announcement of gas discovery is by the Norway’s Statoil.
Some of the natural gas fields in Tanzania are Songo Songo Island, Mnazi Bay, Mkuranga and Kiliwani North.
At Songo Songo the proven reserves are to the tunes of 1.10 trillion standard cubic feet. At Mnazi Bay vicinities are estimated at 2.2 trillion standard cubic feet. Some of the companies involved in this new economic undertaking in the country include Tanzania Petroleum Development Corporation (TPDC), Songas Limited (Songas), Pan African Energy Tanzania Limited (PAT), Maurel et Prom (M&P and Norway’s Statoil).
By February 2012, it was only two gas fields - Songo Songo and Mnazi Bay - that were producing. Among the key discussion issues in this unfolding opportunity is on whether Tanzania is ready to be an oil and gas economy. Some perspectives are outlined in this article.
Oil and gas production is a long term economic activity. It can be looked at from the commodity chain analysis point of view.
There are many chains and nodes in the whole process. After the exploration stage, it requires some more preparations before oil and gas are actually available in the market. Preparatory activities include but are not limited to construction of the necessary infrastructure to accommodate this new type of economic undertaking. These include roads and pipelines to and from the production sites and markets.