Tanzania Petroleum Development Corporation (TPDC), has signed a five year agreement with Knauf Gypsum Factory Limited to supply gas to a gypsum plant currently construction at Kisemvule area in Mkuranga District, Coast Region.
The implementation of the agreement scheduled to start at the end of next year as the factory is under construction.
TPDC Managing Director, Dr James Mataragio, said they are expecting to collect 620m/-per year at the initial stage and may rise to 4.4bn/-annually as the gas usage increases.
He further said the gas demand profile will grow gradually each year from 0.11 million standard cubic feet (mmscfd) in next year to 0.78 mmscfd in a year 2028.
According to him, the gas connection work to the Knauf was at 95 per cent while testing and commissioning was expected to be done by end of this month.
As per contract the customer will start use the gas by 2020 as current the plant is under construction.
TPDC intends to extend natural gas connection to other regions soon to reduce the cost of energy consumption.
It has also invited entrepreneurs, technology providers and partners in investing in natural gas. Knauf’s Managing Director, Mr Georgious Zachopoulos, said the agreement with TPDC was a step in the right direction toward industrialization drive.