(Ecofin Agency) - Tanzania has revealed plans to commission a plant by 2025 to process as much as 11.1 trillion cubic feet of gas.

The East African country has at least 57 tcf of natural gas reserves and the Ministry of Energy in its plan has estimated that the country can regain as much as 70 % of the resource. It also sees total demand at 32.5 tcf over 30 years, with 8.8 tcf intended for power generation.

Tanzania uses around 33 bcf annually to generate 711 megawatts of electricity. The country intends to export no less than 3.1 trillion cubic feet of natural gas to East and Southern Africa during the 30 years as global prices fall.“Declining global prices mean regional markets maybe be a better option to monetize the resource,” the plan revealed.

According to the International Gas Union, Worldwide production of natural gas is projected to increase by 7.6% annually to reach 500 million tons per year in 2030, Further Africa reports.

“Tanzania should not necessarily start allocating gas ratios as that might encourage the growth of unsustainable industries,” Paul Hogarth, an upstream commercial team leader at London-based BG Group, said.

Anita Fatunji