64 companies line up for LNG tender

Dar es Salaam. At least 64 local and foreign companies have lined up to bid for an international tender for provision of advisory services to the government on the execution of a giant liquefied natural gas (LNG) project in Lindi Region.

The tender was advertised by Tanzania Petroleum Development Corporation (TPDC), on April 12 and was closed on May 1 after being published by the African Development Bank (AfDB).

Speaking to The Citizen on Thursday, TPDC acting managing director Kapuulya Musomba confirmed that the tender had attracted bidders from both within and outside the country.

He said that although the tender is sponsored by AfDB, priority would be given to local contractors as per tender document regulations.

According to the TPDC tender announcement, there will be three responsibilities governing the winners of such tender in offering advisory services, including designing a technical plan, preparation of legal documents and a design of business plan for project implementation.

The selected contractors will also be required to build capacity of government officers, investors and partners during the negotiation process and running such complex business.

The deputy chairman of the Association of Tanzania Oil and Gas Suppliers (Atogs), Mr Abdulsamad Abdulrahim, said the tender had come at the right time, adding that it was heartening that reputable international companies had participated in the tender.

Mr Abdulrahim also said that since many local companies were learning from their foreign counterparts, it was advisable that they enter into joint ventures.

“At a certain stage of the tender execution provision and procedure, local consultants should be allowed to actively participate in this crucial project,” he said. Mr Abdulrahim added that since the country had natural gas reserves totalling more than 57 trillion cubic feet, which were enough to meet local demand and for export, participation of local contractors was imperative.

According to the latest Forbes magazine, the global LNG market is now rising at the rate of between four and five per cent due to growing petroleum exploration activities worldwide.