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Nigerian Company to Build 900MW Natural Gas Power Plants in Tanzania

October 16, 2016
1 minute read
Tanzania gas power plant

Nigerian energy company Egbin Power plans to build two natural gas power plants in Tanzania, with total capacity of 900MW at the cost of USD630m.

The announcement was made during a recent five-day tour in Tanzania by the CEO of Egbin Power, Dallas Peavey.

Peavey said to local media that the construction of the plants will commence as soon as the company signs the investment agreement with the government of Tanzania.

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Currently, key issues to be resolved in relation to the Public Private Partnership (PPP) project include the location of the plant and its specifications.

Nonetheless, Peavey said that Egbin has the expertise and experience from its operations in the USA, Argentina, Africa and Europe.

Egbin Power, subsidiary of the Nigerian based Sahara Group, is the largest power generating station in Nigeria with an installed capacity of 1,320MW and planned expansion to 2,640MW.

Tanzania Natural Gas

Tanzania has the second largest natural gas reserves in East Africa with more than 55 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.

Tanzania Investment Guide 2026 Full Edition

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.

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

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