(Ecofin Agency) - The Tanzania Petroleum Development Corporation (TPDC) has announced that following the completion of the 542-km gas pipeline from Mtwara to Dar es Salaam, plans are ongoing to set up a $150 to 200 million mega plant to enable the transportation of the natural gas to large-scale industries and households.

According to the Acting Managing Director of TPDC, Engineer Kapuulya Musomba (photo right), the construction of the 542-km gas pipeline has been completed and has been handed over to Gas Supply Company Limited (GASCO).

He stated that the completion of the pipeline will open opportunities of encouraging economic growth by connecting industries with reliable production energy, adding that the regions which will benefit from the new mega plant include Mtwara, Lindi, Kilwa and Dar es Salaam.

“We have already conducted feasibility studies to put up the infrastructure to connect the areas and construction is due to start in the next financial year,” he said.

Musomba noted that large and small industries and the majority of households are set to benefit from the gas supply initiative which would be financed by the African Development Bank (AfDB). He said some industries had before now been selected for gas connection.

The construction of the pipeline began in 2012 from Mtwara and Songo Songo to Dar es Salaam. The $1.22 billion Mtwara-Dar es Salaam pipeline and gas processing plants at Madimba and Songo Songo Islands, are part of a plan to add about 2,000 megawatts of new gas-fired electricity generating power by 2018 to boost Tanzania's generating capacity to 10,000 MW by 2025, Tanzania Daily News reports.

Anita Fatunji