Tanzania Prioritizes Domestic Use Of Natural Gas Over Exports

Tanzania Prioritizes Domestic Use Of Natural Gas Over Exports

Written by Fumbuka Ng’wanakilala | From Reuters Africa

Tanzania will give priority to domestic use of its natural gas resources over exports under energy policy draft measures seen by Reuters on Friday. The measures were approved by new energy and minerals minister George Simbachawene.

As in other African countries, a debate in Tanzania has focused on how much of its hydrocarbon reserves should be used locally and how much can be exported.

East Africa has become one of the world’s most sought-after oil and gas regions with a string of vast discoveries attracting foreign companies seeking new sources to supply energy-hungry Asian markets.

Tanzania’s new rules reinforce a natural gas policy passed by cabinet in 2013. That policy proposed tough conditions on foreign companies and assurances that the domestic market would take priority over exports.

However, the natural gas policy has yet to be passed into law by parliament. Tanzania is estimated to have 53.28 trillion cubic feet (tcf) of gas, and has said that could rise four-fold over the next five years, putting it on par with some Middle East producers.

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