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Tanzania Save USD7.4b Thanks to Natural Gas Power Production

October 25, 2016
1 minute read
Tanzania gas power

Since 2004, the Government of Tanzania saved USD7.4b from petroleum products importation used for electricity generation thanks to power production from recent natural gas discoveries.

The announcement was made by Aristides Katto , Senior Research Officer at the Tanzania Petroleum Development Corporation (TPDC) during a recent news symposium on oil and gas in Bagamoyo.

Katto told local media that Tanzania’s vast natural gas discoveries also promote the development of its industrial sector.

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A recent report by the Tanzanian Ministry of Energy and Minerals shows that the country’s installed capacity of gas fired power plants stood at 711MW in 2015, accounting for about half of the 1,516MW total installed capacity connected to the national grid.

Furthermore, Tanzania’s installed capacity of gas fired power plants is projected to increase by 150%, from 711MW in 2015 to 1,774MW by 2020, which requires an investment of about USD1.063b.

Tanzania Natural Gas

Tanzania has the second largest natural gas reserves in East Africa with 57 trillion cubic feet (tcf) so far discovered, behind Mozambique with 100 tcf according to the Energy Information Administration (EIA).

According to the latest data, power generated from gas rose by 67%, from 566m kWh in Q2 2015 to 943m kWh in Q2 2016.

The Tanzania Petroleum Development Corporation (TPDC) estimates that the country’s gas fields are large enough to cover the domestic power requirements and make Tanzania the next natural gas hub in Africa.

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Want to know more about investing in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers the economy, key sectors and investment opportunities. The complete 141-page edition, which includes policies, taxation, key regulations, full macroeconomic data and sources, is also available at no cost upon completion of a short form.

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