Tanzania wants energy firms to speed up gas production

DAR ES SALAAM (Reuters) - Tanzania wants energy firms to speed up production of natural gas that it hopes will help end poverty in east Africa's second-biggest economy.

Discoveries in Tanzania's and Mozambique's waters have led to predictions the region could become the world's third-largest exporter of natural gas. Tanzania alone estimates it has 41.7 trillion cubic feet (tcf) of recoverable natural gas reserves.

"Preparations for drilling should not take a long time, such as 10 years ... that is too long, because the people want to see benefits of the natural gas as soon as possible," President Jakaya Kikwete said in a statement issued by his office on Monday.

"We want this gas to benefit our people - to lift them out of poverty. If we earn $1 billion in annual revenues from the gas, then we can transform our country into (a) paradise."

Although the gas finds are large, facilities need to be built to enable the development of the gas.

Britain's BG Group, its exploration partner and Norway's Statoil, which have all discovered gas, say they plan to build a $10 billion liquefied natural gas (LNG) terminal. The terminal would be well placed for exports to Asia.

Tanzania's cabinet plans to approve a national gas policy as well as a set of new laws soon to regulate the gas industry, which could quicken the pace of development by defining how the country's citizens would share in the gas boom.

In the southern region of Mtwara, residents have held deadly protests against the construction of a 532 km (330 mile) pipeline, financed by a Chinese loan, calling for a bigger share of benefits from gas development.

The pipeline runs from the south of the country to the commercial capital and main port in the country, Dar es Salaam.

Source: http://news.yahoo.com/tanzania-wants-energy-firms-speed-gas-production-063428717.html

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