Feasibility studies for mega gas plant in Tanzania to begin

Feasibility studies for mega gas plant in Tanzania to begin

Mega gas plant in Tanzania

The government of Tanzania is expected to commence an environmental impact assessment (EIA) towards the end of this month on a piece land where  a mega gas plant in Tanzania will be constructed.

The $30 billion gas plant in Tanzania will be located at Likong’o Village in Lindi Region. Tanzania has over 55 trillion cubic feet of natural gas reserves.

BG Group that is being acquired by Royal Dutch Shell, together with Statoil, Exxon Mobil and Ophir Energy intends to construct the onshore LNG export terminal in conjunction with the Tanzania Petroleum Development Corporation (TPDC).

Modestus Lumato, the TPDC principal petroleum engineer said the EIA is scheduled to commence soon and will go hand in hand with the Development Report Induction Plan.

Lumato said the two assessments which will be carried for three months to establish whether it is viable to put up the project on the designated area.

“We expect to finalise the implementation of the primary investigations by the end of this year,” he said. “After the EIA is completed we will then start compensating people whose land will be taken.”

He added that the government chief valuer had already approved compensation plan for people who will be relocated from their lands to give room for the project.

Asked on the amount of money involved in the compensation, he said it would be known when the process kicks off.

TPDC has keenly studied the report and determined how much will be paid.

“We are first dealing with the EIA process before we endorse the compensation process.”

Reports indicate that TPDC has a title deed for 2,071.705 hectares for building the project.

An additional 17,000 hectares will be used as an industrial park.

Several assessment to be done

However, he added that several assessments would be done before concluding whether to carry on with the project or not. The first assessment is called the Free Front End Engineering Design that would be followed by the Front End Engineering Design (FEED) that mainly involves an engineering design approach to minimize project expenses.

Mr Lumato said that the completion of the FEED process is crucial to establish the outcome of the project before venturing into the final investment decision so as to commence with construction.

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