Tanzania has recently granted its first natural gas project license in over a decade to Oman-based ARA Petroleum Llc for the Ntorya gas field. With an estimated 1.6 trillion cubic feet of gas, the project is set to begin production within a year under a $180 billion agreement with the Tanzania Petroleum Development Corporation. This milestone makes ARA the first multinational gas investor to secure a license since 2011.
The project, in collaboration with Aminex Plc and TPDC, aims to produce 60 million cubic feet of gas daily, potentially rising to 140 million cubic feet in three years. This initiative is seen as a significant step towards Tanzania’s energy transition, tapping into the country’s substantial natural gas reserves, which currently form 40% of its electricity supply.
Despite delays in reaching agreements with other investors, Tanzania’s authorities are confident in the positive trajectory of the Ntorya project. With plans to enhance production and contribute to sustainable energy solutions, this venture signifies a crucial advancement in the country’s energy sector.
Source link