Tanzania+Natural+Gas


 * It Is Highly Likely China Will Invest In Tanzania’s Natural Gas Sector Over The Next Five Years Due To Vast Reserves And China’s Application To Explore For Gas **

It is highly likely China will invest in Tanzania’s natural gas sector over the next five years. Tanzania has 230 billion cubic feet (Bcf) of proven natural gas reserves and is one of two countries including Mozambique that produce natural gas in East Africa. In August 2013 China’s CNOOC applied for a license to explore for gas and according to the country’s Energy Ministry Chinese companies are also eyeing Tanzania’s natural gas reserves and are expected to bid for oil and gas blocks in the country.
 * Executive Summary: **

According to Oil & Gas Journal Tanzania contains 230 billion cubic feet of natural gas reserves and is one of two countries, including Mozambique, that produce natural gas in East Africa. In 2011 Tanzania produced about 30 billion cubic feet of natural gas from a field located on and offshore the Songo Songo Island, which lies off the coast of Northern Tanzania. Tanzania does not export any natural gas but there have been a series of offshore natural gas discoveries since 2010 that have boosted Tanzania's potential to become a natural gas exporter in the future. Tanzania's Energy and Minerals Ministry stated that gas exploration activities were being carried out offshore, along the coastline and lakes and on onshore blocks. The country's Energy Ministry also stated that Chinese companies are interested in the natural gas reserves and are expected to bid for oil and gas blocks in the country. In May 2013 Tanzania's minister for energy and minerals, Sospeter Muhongo announced that exploration companies planned to fill 17 new wells in the country during the 2013/14 fiscal year at a cost of at least USD 680 million. China's CNOOC applied for an exploration license in August 2013; if approved it will increase the total number of international energy companies involved to 17. Tanzania's natural gas is a strong opportunity for the Chinese to further involve themselves in the country's resources.
 * Discussion: **

Source Reliability: High Analytic Confidence: High

