Analysts have welcomed the recent move by Tanzania’s President Samia Suluhu to revive negotiations on the historic Ksh.3.2 trillion (US$.30 billion) Liquefied Natural Gas (LNG) project, saying it will bring tremendous opportunities and transform the country’s economy.
Discussions which were held virtually between President Suluhu and the Royal Dutch Shell Plc Chief Executive Officer, Ben Van Veur brought fresh hopes to Tanzanians after long years of waiting.
According to the analysts, Tanzania stands to benefit from several aspects that included receiving the total project income through a share of the production allocated, corporate tax, various levies, skills and transfer of technology.
“The country’s foreign direct investment (FDIs) will increase as gas will be exported to other countries, meeting that Tanzania’s reserves will become stronger, hence stabilize the shilling,” said a senior lecturer at the University of Dar es Salam, Dr.Abel Kinyondo.
This is set to bring an influx of jobs, multiple opportunities for local companies, new Infrastructure and a boost in economic activities.
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At the same time, the country’s Director of Exploration Development and Production at the Tanzania Petroleum Development Corporation (TPDC), Kelvin Komba noted that the assurance with regards to the existence of the project is a big step for Tanzania.
“The next step is continuing with discussions with the companies and once they have been finalized, the implementation of the project will kick off soon,” he said.
In May this year, Kenya and Tanzania signed a deal to build LNG pipeline from Dar es Salaam to Mombasa in what the two countries’ leaders said was part of a long-term project to share energy resources.
In April, she also toured Uganda where she and her Ugandan counterpart Yoweri Museveni signed a deal for the construction of an oil pipeline which will traverse the two countries from western Uganda all the way to the Tanzanian seaport of Tanga.
Tanzania has signed multiple deals with foreign countries and revived tens of projects since President Suluhu took reign on March 19 this year, following the death of the late firebrand politician John Pombe Magufuli.