Gas Sector to Drive Tanzania's Growth Rate to Over 15%

Tanzania’s economic growth is expected to see a sharp acceleration in coming years, driven primarily by the natural gas sector, Governor of the Bank of Tanzania (BoT), Prof Benno Ndulu, said on Thursday.

The Governor stated that the economy is projected to start accelerating at the rate of 15.3 percent annually within the next 12 years, reported Daily News Tanzania.

Ndulu said the country's current proven reserves stood at 55 trillion cubic feet (tcf), while construction of a liquefied natural gas (LNG) plant was scheduled to be undertaken between 2017 and 2022.

"Based on current estimates and under favourable global prices, gas production might add to government coffers about 3-4 billion US dollars (nearly 5.5 - 7.4tri/-) per annum," the governor said in his presentation at the launch of Breakfast Series Meetings on "Preparing for Gas Economy," organised by Ms Rex Attorneys.

He further said that the natural gas available was sufficient to satisfy domestic demand and exports to some neighbouring and Asian countries, Daily News reported.