REPORTS from the Tanzania Petroleum Development Corporation (TPDC) show that gas deposits have now reached 50.4 trillion cubic feet (tcf), increasing anxiety among the population which now thinks Tanzania is on the way to becoming
another 'Dubai'.
Experts term this as 'extremely high expectations of super earnings and no wonder the Parliamentary Public Accounts Committee (PAC) was so adamant that it set its eyes on the 26 PSAs that have been signed between the Government through the TPDC and the exploration companies.
Ask anyone on the prospects and the answer would be trillions of dollars in super earnings. However, according to oil and gas experts, the expected high earnings could remain a dream because of a number of factors including more gas discoveries being made elsewhere around the globe which could lower prices due to stiff competition.
These include discoveries in other countries of the region such as Mozambique which has proven reserves of gas amounting to 150 million tcf, discoveries from other continents discoveries from unconventional sources such as shale gas. Shale gas in the United States is rapidly increasing as an available source of natural gas.
The number of unconventional natural gas wells in the US rose from 18,485 in 2004 to 25,145 in 2007 and is expected to continue increasing until about 2040 The economic success of shale gas in the United States since 2000 has led to rapid development of shale gas in Canada, and, more recently, has spurred interest in shale gas possibilities in Europe, Asia, and Australia.
It has been postulated that there may be a 100-year supply of natural gas in the United States, but only 11 years of gas supply is in the form of proved reserves.
There seems to be a hidden air of resignation especially from people who have been vocal in expounding the hopes of the people as they gain a deeper understanding of the gas exploration, production and marketing as compared to earlier enthusiasm and optimism.
"Discovering gas deposits is one thing and extracting them and selling them is quite another. You can have large deposits if cannot you to extract the gas or get markets to sell the gas the dream of super earnings would easily evaporate," said a Denis Maringo Founding Director of the Oil, Natural Gas & Environmental Alliance (ONGEA), adding that "there is no need to be over ambitious."
The view has been strengthened by a Dar es Salaam University Don, Dr. Alex Hepelwa who has asked Tanzania to tow a precautionary line over expected gas earnings, emphasizing the need to develop a strong internal market through increased use of gas for domestic and industrial purposes.
Presenting an overview of the results of a study he conducted with two other colleagues at a workshop organised by the World Wide Fund for Nature (WWF) in Bagamoyo mid last week here, Dr. Hepelwa said Tanzania should also now be prepared for an anticipated stiff competition from new large scale discoveries from unconventional sources in other continents.
He was speaking at a stakeholders' workshop organised by the World Wide Fund for Nature (WWF) in Bagamoyo. Dr. Alex Hepelwa and his two colleagues, Dr Masoud Dauda and Stephen Kirama had been commissioned by the WWF to conduct an Evidenced Based Research and Policy Review on Oil and Natural Gas Sector in Tanzania.
The study aimed at identifying and reviewing policies related to oil and natural gas in Tanzania and to determine gaps, challenges and opportunities and key areas for CSOs intervention. It also aimed at documenting best experiences and practices for oil and gas operations in the region and beyond on Accountability, Transparency and Environmental sustainability.
source: dailynews tanzania
No comments:
Post a Comment