Oil & Gas

In 2015 Mtwara–Dar es Salaam Natural Gas Pipeline project was created in order to diversify the national energy pool and to take advantage of the vast natural gas resources onshore and offshore in the country.

A natural gas pipeline was designed and constructed, to deliver the natural gas to Dar es Salaam for use in power generation, industrial applications, household cooking and in the propulsion of transport vehicles.The estimated cost for the project is USD1.5 billion.

At the beginning of 2016, Uganda chose Tanzania over Kenya for the construction of its oil pipeline to the Indian Ocean, the East African Crude Oil Pipeline (EACOP), due to cost and safety concerns.

EACOP will transport crude oil from Uganda’s oil fields to Tanga, Tanzania, a port on the Indian Ocean.The Uganda-Tanzania pipeline project will be 1,443km long with the capacity of carrying 200,000 barrels per day.The estimated cost for the project is USD3.55 billion.

Once completed, the pipeline will be the longest heated crude oil pipeline in the world.

This year the government of Tanzania will also start investing and revising its Oil and Gas Exploration policies in order to cater to the needs of international investors and invite them to invest in the oil and gas exploration business in Tanzania.

Tanzania is investing heavily in Oil and Gas foundations as a future strategy for the country’s energy and revenue creation.

LIQUEFIED PETROLEUM GAS (LPG)

Currently, five major suppliers of gas share the market namely BP Gas, Oryx Gas, Alpha, Mohan Gas and Pan African/TPDC which is piloting the bottling and distribution of natural gas.

OIL

Petroleum products supply in Tanzania is being conducted through a Bulk Procurement System (BPS) since 2011.