Tanzania to Develop First LNG Virtual Pipeline

Rosetta Energy Solutions, a subsidiary of Taqa Arabia, recently signed a Heads of Terms (HoT) agreement with the Tanzania Petroleum Development Corporation (TPDC) to develop Tanzania’s first LNG Virtual Pipeline.

The agreement was signed by MoussaMakame, MD of TPDC, and Karim Shaaban, MD of Rosetta Energy.

The project will feature a small-scale liquefaction plant in Dar es Salaam, a fleet of cryogenic containers for road transportation, and regasification plants near customer locations to convert LNG back to natural gas.

This value chain is known as an “LNG virtual pipeline,” which replaces traditional fixed infrastructure pipelines with a more flexible and cost-effective approach.

The Virtual LNG Pipeline will provide reliable, economical, and clean energy to households, industries, and the transportation sector. With a modular design allowing scalable LNG capacity to match varying demand, the virtual pipeline can accommodate fluctuating energy demands in developing areas where future growth in energy needs is anticipated.

Through this ambitious project, the partners plan to develop and invest in a small-scale liquefaction facility.

Karim Shaaban, Managing Director of Rosetta Energy Solutions, stated, “This agreement is a key milestone for what we aspire to be Tanzania’s first LNG development. It underscores our commitment to enhancing Tanzania’s natural gas infrastructure, providing competitively priced and reliable energy to foster sustainable industrial growth and local community prosperity. With a target investment exceeding USD 100 million, the project will generate multiple jobs throughout the value chain, significantly contributing to domestic GDP and local content development. Together with our partners, we aim to accelerate the project with potential construction starting as early as 2025.”

For his part, Amr Aboushady, Country Manager of TAQA Arabia in Tanzania, commented, “The agreement [represents] a new remarkable milestone for the natural gas industry development in Tanzania, reflecting the mutual trust between public and private sector. This project shall unleash accessibility to a cleaner, affordable, and reliable source of energy with a tangible contribution to the economic growth of the country. We are committed to one slogan and one objective, Natural Gas for Everyone”.

Following the agreement, Rosetta Energy Solutions announced the signing of a Memorandum of Understanding (MoU) with Elsewedy Industrial Development, a subsidiary of Elsewedy Electric, specialized in developing, managing, and operating state-of-the-art industrial cities.

Rosetta Energy Solutions is set to supply natural gas to Elsewedy Industrial City (EIC) in Tanzania via the innovative LNG Virtual Pipeline. This agreement will significantly bolster the energy infrastructure of EIC, the first fully integrated industrial hub in Africa.

The small-scale liquefaction facility in Dar es Salaam will transport LNG via trucks using specialized containers to the EIC facility 100 KM away. LNG will then be regasified and made available for the industrial city clients to use for direct energy processes or electricity.

Eng. Mohamed AlKammah, CEO of Elsewedy Electric, Infrastructure Investments Sector, remarked on the strategic importance of this partnership, saying: “This collaboration underscores our commitment to driving industrial growth and economic development in Tanzania. By leveraging our expertise in building and operating integrated industrial cities and partnering with Rosetta Energy Solutions, we are set to develop the infrastructure utilities of Elsewedy Industrial City in Tanzania, ensuring a steady and reliable energy supply. This initiative aligns with our broader vision of fostering an environment where businesses can thrive and contribute to the nation’s progress.”

Moreover, Elsewedy Industrial City strives to attract investments surpassing USD 400 million from investors throughout the region, generating more than 50,000 employment opportunities.

The city also includes Elsewedy Technical Academy (STA), which aims to equip the Tanzanian workforce with skills in line with international standards, supporting the evolving global market needs in the face of the new industrial revolution.