Gas supply project gets Sh20bn boost

Dar es Salaam. The government has released a total of Sh20 billion in this financial year, for the gas distribution network to homes in Mikocheni as well as 150 houses in Mtwara region.

This is after the Tanzania Petroleum Development Company (TPDC) first launched the distribution pipeline that connected 57 initial homes in Mikocheni in 2014.

The system supplies gas from Ubungo main station to Mikocheni homes and according to initial plans, the pipeline was to be extended to other sections of the city. The aim is to see most homes in Dar es Salaam connected to the natural gas supply system.

TPDC acting managing director, Kapuulya Musomba told Business Week that their projection is to set up the gas distribution network to over 100 houses in Dar es Salaam but all depended on funding.

“Following the Sh20 billion that was released by the government, our men are currently on site at Mikocheni commencing with work,” he said.

He said that the projected entailed conducting survey in different areas of the city but top most at the University of Dar es Salaam (UDSM) and Mlalakuwa areas.

Since 2014, TPDC has been looking for an investor that will invest in its gas distribution network that is expected to distribute natural gas to about 8000 vehicles and 30,000 households in Dar es Salaam.

The decision to look for an investor was after the completion of a Sh2.6billion ($1.6million) feasibility study on the project in Dar es Salaam.

The plan is to distribute gas to the whole of Dar es Salaam, starting with planned areas first while looking for the best way to supply the product in unplanned areas.

The initial estimates for the project was Sh162.6 billion depending on changes at the due course of the scheme. Mr Musomba noted that, after the government released the funding, they would be implementing the project in phases depending on availability of funding.

Explaining, he said that for this phase they expected to have laid down a section of the gas pipe distribution network to at least 150 homes in Mtwara by June this year.

Initially the Dar es Salaam gas distribution network was expected to be financed by private financers under a public private partnership but reports show that finding an investor proved challenging for the Corporation.

Further reports show that after completion of the feasibility study, the project was expected to have 15 compressed natural gas (CNG) stations that would be set up in phases, starting with the construction of five stations.

The plan was further expected to have distributions pipelines for households and institutions that would be laid down in all the districts of Dar es Salaam region.

But further reports showed that the major challenge that was facing the project is the poor plan of the city, which was causing difficulties in identifying routes for the construction of the distribution network and its associated facilities.

Meanwhile, Mr Musomba said that the project was expected to be continuous depending on how funding will be sourced by ensuring all districts in the region were connected to the gas distribution network.