Thursday, October 17, 2013

GAS IN MTWARA

GAS is one of the four fundamental states of matter. A pure gas may be made up of individual atoms. And what distinguishes a gas from liquids or solids is the vast separation of the individual gas practicles.
Tanzania drew international attention this year by almost trebling its appraisal of its natural gas reserves. Now confirmed at 43 Trillion Cubic feet (TCF), they are valued around $430 billion, .
Mtwara region is now on the topic due to the discovery of gas.
Mtwara region is one of Tanzanians 30 adiminstrative regions. According to the 2012 national census, this Region had a population of 1,270,854.
Exploration for oil and gas began in 1952 in Tanzania. To date, 53 wells have been drilled to completion and six more are in varying drilling stages. This drilling activity has led to the discovery
of nine gas fields, two of which are currently in commercial production.
The import of heavy equipment for oil In collaboration with some operators, the Government is upgrading the Mtwara port to international standards in order to accommodate oil and gas equipment.
The Government is also planning to convert the Mtwara port into a free port and supply base for oil and gas equipment.
 The Government is also investing into gas pipeline infrastructure to provide producers with access to the local market and export opportunities to neighboring countries.
The Government funded the existing 248 km-long pipeline from Songo Songo to Dar es Salaam (12-inch 25 km Songo
It is expected that Tanzania’s natural resources will rise to 200 trillion cubic feet after the next two years.
Already Terms of agrrements with investors are spelt out in the model Production Sharing Agreement (PSA) of 2004 and in the Petroleum (Exploration and Production) Act of 1980.
 The Production sharing agreements are signed between the investors and Tanzania Petroleum Development Corporation (TPDC), which is a public corporation.
 Tanzanian government employees traveled to China to sign a loan agreement for $1.2 billion with Chinese government-owned Export-Import Bank, Tanzania's
The loan will fund the construction of a 532-kilometre natural gas pipeline between Mnazi Bay in Mtwara and Dar es Salaam. The project will build a new 24- to 36-inch pipeline between Mnazi Bay and Somanga, and expand the existing pipeline between Somanga and Dar es Salaam from 16 inches to 36 inches. The pipelines will double capacity, transporting 210 million cubic feet of gas per day.
It is said that  Natural gas provides 35% of the country's electricity,
British gas firm BG Group, Norway's Statoil, Brazil's Petrobras, Royal Dutch Shell and Exxon Mobil Corp are among companies already operating in Tanzania.
The country plans to offer seven deep offshore blocks and one onshore block in October for oil and gas exploration, with the potential of making more high-impact gas finds, while three Chinese companies since  July 21st this year they  start construction of a 512-kilometre pipeline from Mtwara to Dar es Salaam,.
According to one of the government statement, Tanzania current demand is 720 megawatts per day. Therefore, by generating 3,920 megawatts through domestic gas reserves, the country will have a surplus of more than 3,000 megawatts to be used for export or to develop new industries,
It says the project is likely to boost the economy, as generating employment as well
But after all this process the people of mtwara reacted by saying that, government has consistently neglected regions in southern Tanzania, leaving them in abject poverty, they said they had no roads, schools, hospitals or access to water, and employment is nightmare. Mtwara is a symbol of poverty in our country." One qouted.
"Last year, God decided to bless our neglected region by giving us gas," he said. "Ironically, the government comes to befriend us, but maintains the poverty line by transporting our gas to Dar es Salaam. In capital letters we say 'no' to this."they claimed.
In order to generate employment and distribute the national wealth equitably, the government should build infrastructure to convert the gas into electricity in Mtwara and then transport it to other parts of the country, this is what majority belive.
Also it is said that, Developing sectors and creating jobs in Mtwara and other regions would ease the pressure of migrants who head to Dar es Salaam in search of jobs.
But Government defend its position by saying the entire country has benefitted from resources found in Tanzania's regions, thus  16% of the gas extracted in Mtwara would go to Dar es Salaam, with the remainder to stay in Mtwara for various uses, including for export by sea.

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