Tanzania’s gas-to-liquid plan gets fresh impetus

Dar es Salaam. Tanzania is accelerating its efforts toward generating diesel and jet fuel using natural gas as investors are now moving ahead to conduct a feasibility study before building a processing plant.

Canadian company Rocky Mountain GTL, in collaboration with its African partner Memnon Africa and local associate Rithi Tanzania Group Limited, has initiated a feasibility study with the Tanzanian government for constructing a gas-to-liquid (GTL) plant.

The proposed $420 million plant is poised to advance Tanzania energy sector by converting natural gas into diesel and jet fuel.

The facility is designed to transform natural gas into synthetic diesel and jet fuel. Additionally, it aims to produce naphtha—a key component for diluting heavy oil in pipelines—and hydrogen fuel, which is increasingly sought after in developed nations.

Once realised, the investment will help to save Tanzania’s foreign exchange and bring some stability in prices of the product that is currently imported.

White petroleum products, which include synthetic diesel and jet fuel remain a dominant factor in Tanzania’s import bill.

Last year, the country spent $2.6 billion on importation of refined white petroleum products, Bank of Tanzania figures show.

The amount was a decline of 3.6 percent compared to $2.7 billion imported in 2023, with the BoT attributing the decline to moderation in global prices.

“The planned gas-to-liquid (GTL) plant in Tanzania has already local and international investors pushing to be involved,” said Memnon Tanzania chief executive officer Jackson Pemba.

“As a Tanzanian loyal citizen, I’m proud that I have done something for my country. Convincing such kind of investment is not a joke. It will definitely benefit the country and that’s what we all want,” he said, adding that the GTL technology is the first of its kind in Tanzania.

According to him, the technology is able to be developed in a shorter time to produce diesel, fertilizer and jet fuel than any refinery in Africa and the world.

The plant is able to be in production within two years, producing 2,500 barrel per day at the initial stage, he said.

During the recent East African Community (EAC) Petroleum Summit in Dar es Salaam last week, Rocky Mountain GTL’s innovative technology garnered significant attention.

The firm held a kick-off feasibility study orientation with the Tanzanian government while simultaneously meeting with Deputy Prime Minister and Energy minister Doto Biteko.

Last year, Rocky Mountain Clean Fuels Inc signed a memorandum of understanding with the Tanzania Petroleum Development Corporation (TPDC) to enter into series of consultations and transactions related to supply of natural gas to the company.

TPDC is the national oil company of Tanzania through which the Ministry of Energy and Minerals implements its petroleum exploration and development policies

“We have been in series of meetings with Rocky Mountain Clean Fuels Inc since last year as we plan to supply the company with natural gas,” TPDC director general Mussa Makame said.

“This project is unique and very important for Tanzania and we are convinced to be part of it by acquiring about 30 percent of the project,” he said.

Mr Makame added that the planned facility will start with jet fuel and if all goes well, Tanzania will not be importing the aviation fuel.

The company’s proprietary process enables rapid development of GTL plants, capable of producing diesel, fertiliser, and jet fuel more swiftly than traditional refineries.

Notably, their Alberta, Canada plant operates with zero-sulphur, biodegradable fuel, underscoring its environmental benefits.

Tanzania’s natural gas reserves, estimated at 57.54 trillion cubic feet, have primarily been utilised for electricity generation and industrial applications. The introduction of a GTL plant aligns with the nation’s strategy to diversify energy production and reduce reliance on imported fuels.

Through the gas-to-liquid project, Tanzania will be the first country in Africa to sell jet fuel and diesel to neighbouring countries. This is a significant step that will also lower the price of the energy in the country.

According to the company, the synthetic diesel is environmentally safe for using it directly with diesel engines or binding it with other diesel and is biodegradable in water.