Tanzania natural gas imports should supplement Kenya’s energy sources

Tanzania natural gas imports should supplement Kenya’s energy sources

Last week, presidents William Ruto and President Samia Suluhu reaffirmed their commitment to implement a 2021 agreement to import piped gas from Tanzania. Having failed to discover commercial deposits of natural gas, Kenya can now explore the economic opportunities of piped natural gas imports from Tanzania.

Although a fossil fuel, natural gas is widely accepted as a lower-carbon “bridge” for energy transition to renewable energy. Natural gas is essentially methane. It is not LPG, which is mainly higher carbon butane, bottled for use in our kitchens. Natural gas is piped under pressure for use in power plants, industrial heating, and institutional or domestic heating. It is also a feedstock of choice for manufacture of chemicals, including fertilisers.

Natural gas imports from Tanzania can fit into our long-term energy supply and demand matrix. However, being imported energy, it has balance of payment implications, and is subject to global commodity market and currency volatility. For this reason, natural gas should only supplement and not replace local indigenous energy sources. It should not crowd out local capacity for renewable energy (geothermal, hydro, wind and solar).  

Strategically, Tanzanian natural gas should initially target coastal economic opportunities, focusing on existing thermal power plants, cement and steel industries and hotels. These consumers are currently using either fuel oil or coal, which is imported.

This conversion will reduce carbon emissions, while providing opportunities for energy cost reduction to the economy. The planned Dongo Kundu industrial zone is an ideal termination and distribution point for the gas pipeline from Tanzanian, as it will promote new medium-sized industries.

Further, feasibility studies for ammonium fertiliser manufacture should be done with natural gas and air as feedstocks. There is always danger when governments “politically” agree on projects without full strategic and economic justifications.

Economic feasibility studies should deliver to the economy lower energy costs to allow Kenya’s manufactured goods to be competitive in regional and overseas markets, while replacing cheaper imported goods. In power generation, natural gas unit tariffs should be the deal maker or breaker.

The gas agreement should include a foolproof natural gas cost escalation formula correctly insulated from market volatilities.

Should Kenya commit to import gas from Tanzania, then the planned imports of Ethiopian hydroelectricity should be re-assessed. The two may be mutually exclusive, with natural gas carrying higher opportunities for economic multiplication.

Finally, Kenya should continue explorations for own gas, with a caveat to reduce Tanzania imports to accommodate local production.

Original Media Source

Share this news

Facebook
Twitter
LinkedIn
WhatsApp

This Year’s Most Read News Stories

Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades
Tanzania Foreign Investment News
Chief Editor

Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades

Tanzania: Exim to Raise Fund for Mental Health Facilities Upgrades

EXIM Bank to raise 300m/- over the next three years for financing essential services and infrastructure upgrades in mental health facilities.

The bank’s Head of Marketing and Communications Stanley Kafu unveiled this when introducing Exim Bima Festival 2024 as a platform for bringing together individuals, organisations and various sectors for raising the funds.

“Exim’s initiative aligns with the government’s broader goals to ensure that every citizen has access to quality healthcare, including mental health services,” he said.

The initiative, which is one of the events for celebrating the bank’s 27th anniversary is scheduled for Wednesday this week in Dar es Salaam.

Mr Kafu highlights that this year’s festival is not only about raising awareness of the importance of insurance in the society but also focuses on enhancing access to mental health services and improving the overall well-being of the nation.

Statistics from the Ministry of Health shows a staggering 82 per cent increase in mental health cases over the past decade.

Mental cases have risen from 386,358 in 2012 to 2,102,726 in 2021, making the need for mental health services more urgent than ever.

ALSO READ: NBC’s Saving Campaign Empowers Customers Nationwide

Unfortunately, the country’s ability to address this growing challenge is hindered by a shortage of mental health professionals, infrastructure, medical equipment and essential medication.

For example, out of the 28 regions in the country, only five have facilities that provide adequate mental health services.

The most affected group is the youth aged 15 to 39, who represent the nation’s workforce, underscoring the need for intensified efforts to safeguard this generation for Tanzania’s future well-being and development.

Mr Kafu said by improving mental health services, Exim aims to contribute to the creation of a network of communities that can access care quickly and affordably.

Exim Insurance Department Manager Tike Mwakyoma said they are appreciating the support from partners in the insurance industry, who have stood by them since the last festival.

“Let’s continue this unity for the development of all Tanzanians and our nation as a whole,” the manager said.

Source: allafrica.com

Continue Reading

Tanzania's opposition party ACT Wazalendo honours veteran politician under new policy
Tanzania Foreign Investment News
Investment News Editor

Tanzania’s opposition party ACT Wazalendo honours veteran politician under new policy

Unguja. Opposition party ACT Wazalendo today officially bids farewell to its former Chairman, Juma Duni Haji, also known as Babu Duni, as part of a new policy designed to honor retired senior leaders at a ceremony held at Kiembesamaki, Zanzibar.

The initiative highlights the party’s commitment to recognizing and supporting individuals who have served with dedication and integrity.

Babu Duni, who stepped down earlier this year, was succeeded by Othman Masoud, now the First Vice President of Zanzibar.

The policy aims to provide ongoing respect and support to retired leaders, ensuring their continued recognition and contribution to the party’s development.

“Recognizing their significant contributions to the development and prosperity of the party, this policy ensures that retired leaders continue to be acknowledged and respected by both the party and the community,” the policy states.

To benefit from this policy, leaders must not have left or been expelled from the party. They must have served the party with honor and dedication. The national leadership committee will determine whether a leader has fulfilled these criteria.

The policy seeks to honor retired leaders, protect their dignity, acknowledge their contributions, leverage their ideas for the party’s growth, and support them to the best of the party’s ability.

In honoring these leaders, the party will provide a vehicle, the type of which will be determined by the national leadership committee. Additionally, they will receive a monthly allowance, with the amount also set by this committee.

Other benefits include health insurance. If a leader does not own a home, the party will cover their rent at a rate decided by the committee.

The leadership committee may also grant special recognition based on the leader’s contributions. Retired leaders will participate in decision-making meetings according to procedures outlined in the party’s constitution.

Depending on the party’s resources at the time, the policy may also apply to retired deputy chairpersons for both the mainland and Zanzibar, the Secretary-General, Deputy Secretary-General for both mainland and Zanzibar, and the party’s Attorney General.

Additionally, leaders, executives, or members with exceptional contributions to the party’s protection, advocacy, and defense may also benefit, as determined by the leadership committee.

Currently, those who are eligible for benefits under this policy include Juma Duni Haji (retired party Chairman) and Zitto Kabwe (retired party leader).Continue Reading