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    World

    Tanzania grants permission to China for exploration of natural gas reserves

    Tanzania grants permission to China for exploration of natural gas reserves

    Tanzania has granted permission to China's state-owned offshore oil and gas corporation (CNOOC), to explore its vast natural gas reserves, Business Insider reports.

    Uganda-Tanzania oil Pipeline
    Photo: Business Insider

    The agreement was disclosed by Tanzania's Energy Minister, January Makamba to the reporters. The move comes as Tanzania aims to accelerate the development of its natural gas resources and tap into the growing demand for liquefied natural gas (LNG) in international markets.

    As part of the agreement, CNOOC and Tanzania Petroleum Development Corporation (TPDC) will collaborate on offshore exploration projects in TPDC's deep-water areas. The minister emphasized that there is still significant untapped potential for oil and gas discoveries in Tanzania, as only 30% of the country's resource-rich areas have been explored thus far.

    The decision to permit Chinese involvement in the exploration of Tanzania's natural gas reserves follows a recent deal between the Tanzanian government and three supermajors—Shell, Equinor, and ExxonMobil—to construct a substantial LNG export terminal. This facility will enable Tanzania to capitalize on the growing demand for LNG, particularly in Europe, where there is a shift away from Russian pipeline supplies. To deliver gas to Europe, which aims to stop using Russian gas by 2027, oil and gas companies are now aiming to clinch more agreements in the Mediterranean and Africa.

    Claudio Descalzi, the CEO of Eni, highlighted the potential for Africa to become a significant supplier of gas to Europe, suggesting an emerging "south-north" energy axis.

    Tanzania's decision to partner with CNOOC reflects its commitment to harnessing its natural resources for economic growth. The exploration and potential exploitation of its natural gas reserves could provide Tanzania with significant revenue streams and contribute to the country's energy security. However, it also raises concerns about environmental impact and the need for responsible and sustainable resource management.

    The seismic research and offshore licensing round scheduled for 2024 will play a crucial role in determining the extent of Tanzania's natural gas potential.

    24.06.2023, 21:18   Comments (0)   1839
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