LNG PROJECT ALIVE, WELL, STATE ASSERTS

Author: LYDIA SHEKIGHENDA
AfricaPress-Tanzania: THE planned multitrillion Liquefied Natural Gas (LNG) in Lindi Region is alive and well, contrary to claims being made by some individuals that the strategic undertaking is dead, the government has stressed.

Given the huge amount of money required to finance the project, talks are underway between the government and investors on implementation modalities of the planned plant in Lindi Region.

Chief Government Spokesperson and  Permanent Secretary in the  Ministry of Information, Culture, Arts and Sports Dr Hassan Abbasi said that, the fifth phase government has taken  initial  steps  towards  the  implementation  of the project among which is the allocation of land  for the  construction of  the plant.

Dr Abbasi spoke on the project in  Dar es Salaam yesterday while briefing journalists on the achievements of the fifth phase government in  the energy and mining sectors, saying the State had also compensated villagers who were relocated to pave way for the project.

“The government has so far compensated 618 villagers out of 693 a total of 5.2bn/- to pave the  way for the project… the payment for the remaining   citizens will be concluded in the near future,” Dr Abbasi said.

He said the initial preparations were crucial since the government was determined to see the project being carried out once the talks are concluded.

The 8trn/- project is expected to be developed by the international oil companies (IOCs) in partnership with the State-run Tanzania Petroleum Development Corporation (TPDC).

Tanzania boasts estimated recoverable gas reserves of over 57 trillion cubic feet (tcf), mostly in southern offshore fields.

The  Minister for  Energy, Dr Medard Kalemani, said in May last  year that a consortium of international oil companies  will start building a long-delayed liquefied natural gas (LNG) project in 2022.

Dr Abbasi further said that, the strategic scheme will help the country to convert its natural gas to liquefied form which can be easily transported.

“The negotiations on cost agreement with investors interested to invest in the project are in progress; we are making preliminary preparations to allow the project to kick off soon after concluding the talks,” Dr Abbasi further explained.

He assured the public that the LNG project would be executed since it was crucial for the country’s economy especially when Tanzania will start exporting the energy.

Meanwhile, the PS  said the government was proceeding with the project of connecting households to natural gas network in Dar es Salaam, Coast, Mtwara and Lindi regions.

“Until June this year, more than 500 households have been connected to the natural gas network as initiatives to promote usage of clean energy sources… we are building a country whose people are going to abandon the use of firewood and other energy sources which are not friendly to environment,” Dr Abbasi said.

He said infrastructures for connecting more households to natural gas were still being fixed in the four regions. In Mtwara alone, the government has installed infrastructure which will allow more than 3000 clients to have access to the natural gas.

The PS further added that  the 18 kilometer infrastructure has been constructed which will connect more than 10,000 clients in Dar es Salaam.

Dr Abbasi also said that more than 400 vehicles had been converted from using fuel to natural gas from 60 cars over the past five years.