The agreement is between the Ministry of Energy and Minerals and Japan International Cooperation Agency (JICA), according to a statement released recently by JICA.
JICA has been providing technical cooperation to the country’s power and energy sector for decades. This time, the government of Japan through JICA has become engaged in the formulation of a natural gas master plan and a promotion and supply system for the important energy source.According to the statement, the project has identified a number of challenges that it seeks to resolve, including mobilisation of funds from both the public and private sectors, which is expected to take time.
Other challenges are the ability of public and private sector investors to supply gas production within agreed timeframes; the supply volume of gas needed by consumers at affordable prices; and the high cost of gas development projects which require huge investment with high technology cannot be overemphasised
We are saying the project scope should focus on review of energy/natural gas demand and world market conditions for Liquefied Natural Gas (LNG) and other gas industries, and study the gas supply system for the domestic market covering a regional demand outlook. The project should also look into technical conditions for a gas supply network, and a model for gas transport /delivery under a national gas supply plan.
Also a model implementation the plan should cover project modelling and evaluation, compilation of the natural gas supply/delivery plan, capacity development in Japan focusing on natural gas project planning and business management, natural gas industry technology, and site visits.
We are sure that the formulation of the natural gas master plan will facilitate both the public and private sectors to identify front-runner projects, LNG projects, and gas field development for shallow and deep sea.
The study we are also told that will furthermore provide a domestic natural gas promotion plan and policies. According to JICA, the world market environment for natural gas has been declining in the past few years compared to other energy sources where technologies and objective areas are screened by new price levels.
In this regard, the study should promote and enable investors to invest with guarantee of resource availability. JICA’s cooperation with Tanzania, power and energy sector has been one of the highest priority areas. It is the key sector to support and further accelerate the economic growth which has been quite outstanding.
JICA has become one of the largest bilateral development organisations in the world with a network of 97 overseas offices, projects in more than 150 countries, and available financial resources of approximately 1 trillion yen ($8.5 billion). The reorganised agency is also responsible for administering part of Japan's grant aid which is currently under the jurisdiction of the Ministry of Foreign Affairs and so all three major ODA components—technical cooperation, grant aid, and concessional loans—are now managed under one roof.
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