Tanzania will benefit from US-led initiative to invest in gas plants in Africa.
US companies will invest US $175 bn in gas power projects in Tanzania and eight other African countries. Other countries include Kenya, Côte d’Ivoire, Ghana, Nigeria, Senegal, Angola, Mozambique and South Africa.
The countries were picked for there large populations, high gross domestic product. As well as there local gas resources or are planning liquefied natural gas (LNG) import projects.
Hence, the mission of this initiative known as Gas Roadmap is to add some 16,000MW of gas power in nine countries by 2030.
A key ingredient in Africa’s energy mix is, and will continue to be, clean natural gas. Natural gas and LNG projects have the potential to generate essential electricity quickly and at reasonable prices.
The Gas Roadmap is part of the Power Africa Initiative with gas resources existing in 14 countries in sub-Saharan Africa. Tanzania will benefit more because of the large amount of natural-gas in the country.
In April, the completion of the natural gas-powered plant at Kinyerezi, outside Dar es Salaam worth US $345 m. This plant has a capacity to generate 167.82MW. Other projects at Kinyerezi are on the pipeline with a possible capacity of more than 600MW.
Tanzania’s current power generation capacity is 1,310.7MW of which hydro-generated power is 561.843 MW and thermal gas and diesel generation is 748.876MW. According to the roadmap, the US government interventions will focus on addressing the constraints related to gas projects in sub-Saharan Africa.
These include the availability of gas (both from a source as well as delivery method perspective), financial strength of off-takers of power and gas, lag in downstream infrastructure, such as power transmission and distribution capacity and the various markets’ ability to absorb power and gas.