Magufuli Honours Promise As Dangote Factory Gets Direct Gas Supply

Production on of affordable cement now to start next month 

By Correspondents Dar and Nairobi, 15:16 GMT

Under his famed “delivery per se” policy, the government of Tanzania under President John Pombe Magufuli has finally confirmed that it has completed its phase mission of connecting Dangote cement plant in Mtwara, in the southern region of Tanzania, to the natural gas to generate the needed 35MW.

Mr. Aliko Dangote in a tete a tete with President Magufuli at the inaugaration of the plant last year.

Speaking at the end of his tour of the factory, the Energy Minister Dr. Medard Kalemani said the government was committed to supply the natural gas resource to enable Dangote cement plant access affordable energy for smooth cement production. The factory is one of the biggest cement plants in Southern Africa providing affordable cement to locals and countries in the vicinity.

“I am telling you TPDC, if the factory delays to complete its installation of the operational systems from diesel to gas, please write to remind them that we are out here waiting, we are done with our part, the gas is at their doors, we can even supply it today, right now if the installations were ready,” the Minister re-assured them.

Dangote factory in Mtwara region in Tanzania.

TPDC is Tanzania’s Petroleum supervisory entity, Tanzania Petroleum Development Corporation. Dangote had complained to President Magufuli on affordable sources of power facing his factory. The connection is a manifestation that President Magufuli’s government honours its promises to investors.

The Minister was quoted to have insisted that he is that the factory was making preparations by swapping the diesel operational systems to gas, adding that as soon as the installations were completed, the government will immediately supply the resource since it was right in their doors.

This follows a completion of the gas infrastructure, with installation of a natural gas pipeline from Block Valve Station one (BVS 1), a 132 meter distance to the cement factory.

Dr. Kalemani further said that TPDC has already completed its phase mission of connecting the factory to the natural gas for power generation and that the government was committed to work hand and glove with all investors in Tanzania.

Speaking at the function, Engineer John Bura from BQ Contractors Limited, on behalf of Dangote management said Dangote cement is excited with government gesture to supply them with natural gas to ease the costly diesel they were using for power generation.

He said the factory will resume cement production in June 2018 (next month) when installation of the gas operational system will be completed.

The development raises hope that production at the country’s largest cement producer will not be affected by electricity interruptions, enabling the factory to work smoothly and plan its annual production capacities uninterrupted by power.

“We are currently switching off our diesel systems and installing those that will use natural gas. I am certain that once we start using natural gas as a source of energy, we will save production costs which will result in continuous lower prices,” said another source from Dangote.

Before switching to natural gas, the plant was consuming about six million liters (6,000,000ltrs) of diesel per month, spending millions of money.

“With natural gas, our operational costs will go down and we will subsequently reduce the price of cement hence forces down construction costs in the country”, the engineer said.

This is good news not only to the booming industries in Tanzania but also to the ordinary Tanzanians who were experiencing a rise in cement prices since Dangote stopped production.