The 55 trillion (tcf)
gas resources so far discovered in Tanzania can meet the current demand of gas
for the whole of the UK between now and around 2040, The Guardian has reliably
learnt. The gas resource is 22 times the gas British users consume annually. The
annual British consumption lies at 2.5 tcf meaning that Tanzania has capacity
to supply the UK with gas for over 20 years.
Experts within the sector say that
further investment in exploration activities to discover more gas will put
Tanzania in a position to supply other lucrative markets. They say that the
country has potential and capacity to satisfy both local and external demand
provided proper conditions are put in place to attract the necessary capital in
the industry.
Mr. John Ulanga, BG Tanzania vice
president for policy and corporate affairs, stated the capacity shows how big
the industry has become and the gas potential Tanzania possesses. Mr. Ulanga
was speaking last Thursday at the launch of an oil and gas suppliers’ database,
which the company has teamed up with Statoil Tanzania and Achilles to
establish. The supplier capacity register, which meets the procurement needs of
oil and gas companies working or seeking to work in the region, will trade as
Achilles East Africa Oil & Gas Community.
He also said “Tanzania has been
blessed with significant amount of gas resources in the deep sea to the tune of
about 47 tcf, which is the amount of gas that could supply the UK for close to
20 years for all of their current gas needs.”
Achilles is one of the world’s
largest service providers of global supply chain risk management solutions,
which works on behalf of 860 buying organisations operating in 11 different
sectors, including oil and gas. Company officials said in Dar es Salaam on
Thursday that the oil and gas sector was the first industry to adopt the
Achilles Community model.
Ulanga said contemporary supplier
management was a key aspect in the development of the industry in Tanzania and
its future robust growth. He said better exploitation of the gas resources
requires not only capital investments but also modern supply chain services
like the Achilles suppliers’ registration and assessment mechanism.
“As part of development of these
resources, significant investment will be made in the next 10 years or so,”
Ulanga told the gathering noting that the Achilles datable provides for an
independent and internationally accredited mechanism to identify suppliers
suited to develop the gas industry.
“The estimated investment to develop
the deep sea gas fields and build the LNG plant is in the tune of US$40 to
US$60 billion, which is an amount more than four to six times of the current
government budget,” the BG Tanzania official added.
He also said the capital was four to
five times the current foreign direct investment (FDI) stock in the country,
which he put at between US$12 billion and US$13 billion.
Ulanga said BG and Statoil Tanzania
have invested in the establishment of the Achilles database in Tanzania that
also serves the region because the industry functions well when it is served by
credible and capable local and international suppliers.
According to him, the database does
not belong to the two gas firms but to Achilles that currently serves over 230
of the oil and gas sector’s buying organisations and over 17,500 supply side
businesses in 19 countries across six continents. The company now operates
seven communities in the sector worldwide, including the East Africa Oil and
Gas Community.
Genevieve Kasanga, the head of communications
at Statoil Tanzania, said Achilles East Africa Oil & Gas Community will
support growth of local firms as well as the national economy. She also added
that the arrangement was an opportunity for local suppliers to showcase their
services and promote themselves across the board. According to her, Statoil,
which currently operates in 30 countries across the world, opened for business
in Tanzania in 2007. By May last year, the company had successfully drilled 14
wells to establish a gas resource base of 22 tcf, which is enough to supply the
whole of the UK for nearly nine years.
“The Achilles East Africa Oil &
Gas Community has been developed in partnership with BG Group and Statoil to
provide a Supplier Capacity Register that meets the procurement needs of oil
and gas companies working or seeking to work in the East Africa Region,” Gareth
Palmer, regional director, Middle East and Africa for Achilles said in a
presentation of the project and the company.The database is based on a proven
supply chain management system that standardize and streamlines the way buyers
and suppliers conduct business with each other. This in turn drives important
efficiencies for all parties involved in the procurement process.
Achilles says for organisations
operating or looking to operate in the region’s oil and gas industry should
strive to get an accurate understanding of both in-country and international
capacity to supply before preparing for tenders.
The company says its procurement
services enables organisations to achieve the required level of transparency to
support all buying decisions and activities, and to deliver against critical
compliance requirements.
Achilles collects, validates and
maintains essential data on more than 133,000 suppliers worldwide.
Tanzania Private Sector Foundation
(TPSF) has endorsed the initiative but raised concerns over the charges to
access the database by especially the “real small and medium enterprises”.
Other organisations supporting it are Tanzania Chamber of Commerce, Industry
and Agriculture, Tanzania Petroleum Development Company and the Contractors
Registration Board.
The TPSF’s executive secretary, Godfrey
Simbeye said at the launch that the database was a platform for local firms to
secure business opportunities. According to him, Achilles East Africa Oil &
Gas Community was also a tool for empowering SMEs, capacity building and communication.
However, he said the service charges were an issue. The annual subscription
fees to access the Achilles database ranges between US$240 and US$2,130. That
translates to between 528,000/- and 4.68m/- at the current exchange rate.
Source: IPP Media
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