Tanzania presidency hopeful to fix LNG land issues in weeks

2015-10-27 14:11
John Magufuli. (File: AFP)

John Magufuli. (File: AFP)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Nairobi - A government led by Tanzania's John Magufuli, if his election victory is confirmed, would within "a few weeks" remove impediments related to the site of a planned liquefied natural gas (LNG) plant and other issues, a close aide said on Tuesday.

Pre-election polls forecast a win by Magufuli, whose CCM party has been in power for half a century. CCM campaign director January Makamba said the party's count from its representatives at polling stations suggested Magufuli would win about 60% of the presidential vote.

The opposition has disputed the ruling party's claims. Final results from Sunday's vote are not expected until Thursday.

Magufuli has promised more urgency in decision-making, responding to a frequent complaint from businesses. One example has been delays in finalising a site for the multi-billion dollar LNG plant that will exploit huge offshore gas finds.

"We know that it is a competition. If the neighbouring country Mozambique gets its own (plant) running, ours will not be viable," Makamba told Reuters, adding that any official impediments would be resolved "after a few weeks" in office.

Land purchase

"It will change the landscape of Tanzania's economy," said Makamba, noting there had been issues related to ownership and transfer of land for the plant expected to be sited around Lindi, south of the commercial capital Dar es Salaam.

Tanzania has allocated funds for the land purchase.

"There are some things that can be sorted out by government immediately," Makamba said by telephone.

BG Group, being acquired by Royal Dutch Shell , with Statoil, Exxon Mobil and Ophir Energy plan to build the LNG export terminal, with the aim of starting up in the early 2020s.

But their final investment decision has in part been held up by delays in finalising issues related to the site.

Mozambique's plans to build an LNG plant have moved more swiftly. With other LNG projects moving ahead around the world, the best deals for long term gas sales contracts will likely be secured by those who come on stream first, analysts say.

Tanzania could add 2 percentage points to existing annual growth of 7% simply by starting work on the huge plant that would draw in billions of dollars of investment, a senior Tanzanian central bank official told Reuters last month.

Makamba said Magufuli would also press on with other major projects, such as improving rail links with central African neighbours and expanding light manufacturing in Tanzania.

Read more on:    ccm  |  john magufuli  |  tanzania  |  east africa  |  tanzania elections 2015

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

Inside News24


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.