It appears there is no end to the offshore East Africa gas boom. Tanzania recently announced its latest deep-sea discoveries, which show the country has 18% more natural gas than previously calculated.
The discoveries, off the southern coast, were made by Statoil, Exxon Mobil, BG Group and Ophir Energy. Tanzania’s estimated gas reserves now stand at 55 trillion cubic feet. To support development of the riches, a 532 km pipeline and gas-processing plants, which will connect offshore natural gas fields to Tanzania’s commercial capital Dar es Salaam, are in development and expected to be operational by September.
At a price tag of nearly US$1.3 billion, the pipeline will enable the country to switch to gas-fired power plants and reduce its oil imports. According to a ESI-Africa report, this could lead to an annual saving of more than US$1 billion.
