Dubai-based Dodsal Group has struck natural gas deposits worth $8bn in Tanzania’s Ruvu basin, the country’s biggest onshore gas discovery so far.
The find of over 2.7 trillion cubic feet (TCF) of deposits is located about 50km from Dar es Salaam.
It brings Tanzania’s total estimated recoverable natural gas reserves to over 57 TCF, making it a major player in East Africa’s natural gas sector.
Dodsal also said a company well at Mbuyu has encountered a large gas column which could contain up to 5.9 TCF of gas. It is expected that the company will better understand how large this deposit actually is in May.
Dodsal, which signed a production sharing agreement with the Tanzanian government in 2007, said it had invested $200m to date, and plans to invest another $300m in Tanzania over the next two years.
This will include an early production system to bring gas to the market. Rajen A. Kilachand, Chairman and President of The Dodsal Group, said: “Tanzania has tremendous potential in the hydrocarbon sector. When efficiently leveraged, this will bring incremental economic growth by assuring timely and ready supply of clean energy.”
He pledged to create new jobs for Tanzanian young people and to drive the growth of SMEs by building a strong local supply chain.
Analysts were reported as saying that a major advantage of the latest find was its proximity to Dar es Salaam, making potential exploitation and export easier.
However Tanazania’s natural gas reserves are still dwarfed by those in neighbouring Mozambique, which are estimated at 150 TCF.