Tanzania Plans 400 Megawatts of Gas-Fired Power Projects

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Tanzania is looking to construct gas-fired power projects to bridge chronic power shortfalls in a country where only 10% of its 40 million people have access to electricity. Currently, about 55% of the country's power is generated by hydropower.

The government is looking for a $700 million loan from the Export-Import Bank of China to assist the state utility, Tanzania Electric Supply Company (Tanesco) (Dar es Salaam, Tanzania), to build a 300-megawatt (MW) gas-fired power plant in the south of the country. If plans proceed, after any restructuring of costs and plans, the project could start in the 2011-12 financial year.

The power plant will be fuelled by natural gas from the Mnazi Bay fields in Mtwara. Tanzania has proven natural gas reserves of 7.5 trillion cubic feet.

Tanesco has also placed a contract with Jacobsen Elektro (Lier, Norway) to build a 100-MW plant for the Ubungo power project in the country's capital, Dar es Salaam.

Siemens has a contract to supply three SGT-800 industrial gas turbines with a combined capacity of 100 MW, which are planned to be connected to the grid later this year. The natural gas feed will be supplied by a pipeline from the offshore Songo Songo field.

Marcus Tacke, CEO of the industrial power business unit of Siemens Energy, said that the company's gas turbines could support the development of a reliable power supply in Tanzania. He added that the highly efficient SGT-800 turbines would provide power with emissions below international standards to provide friendly fossil fuel power.

In March, the International Monetary Fund reduced its forecast economic growth for Tanzania from 7.2% to 6%. Although this is still a respectable growth rate in global terms, it is coming from a very low economic base. The 12-hour power cuts experienced in the country have been exacerbated by low water at hydropower dams and thermal fuel shortages.

The addition of 400 MW to installed capacity by the gas-fired schemes will add almost 50% to the country's actual available generating capacity of 800 MW, which is at least 100 MW short of demand. With a number of mining and industrial projects on the way and continued low power access for the population, the country will have to maintain a stream of projects to attain and ensure sustainable energy security for the next two decades.

For further information see January 18, 2011, article - Tanzanian Power Transmission Project Part of Southern African Power Pool Plan.

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