Egyptian firm tasked with supplying Tanzania’s industrial hub with LNG

Egypt’s Rosetta Energy Solutions, a subsidiary of Taqa Arabia, and Elsewedy Electric’s subsidiary Elsewedy Industrial Development have signed a memorandum of understanding (MoU), enabling the former to provide natural gas for an industrial city in Tanzania via what is said to be the first-of-its-kind LNG virtual pipeline.

Under the MoU, Rosetta Energy is slated to transport natural gas from its small liquefaction plant in Dar es Salaam to Tanzania’s Elsewedy Industrial City (EIC), described as the first and fully integrated industrial hub in Africa. An LNG virtual pipeline will be used, which the Egyptian firm believes is a more flexible and cost-effective solution than traditional fixed infrastructure pipelines. 

The LNG will be transported from the liquefaction plant to the EIC facility around 100 kilometers away, where it will be regasified and used for energy processes or electricity. This is expected to enhance the energy infrastructure in the industrial city.

Karim Shaaban, Managing Director of Rosetta Energy Solutions, highlighted: “Our vision is to create an energy hub in Tanzania, deploying TAQA Arabia’s comprehensive energy solutions across gas, power, renewables, and utilities. We aim to provide competitively priced and reliable energy to Tanzanian businesses and residents, fostering sustainable growth in industrial sectors and enhancing prosperity for the local community.”

The virtual pipeline, said to be the first in Tanzania, will be developed thanks to a heads of terms (HoT) agreement Rosetta Energy signed with Tanzania Petroleum Development Corporation (TPDC) and the Africa50 infrastructure investment platform in May. The project comprises a small-scale liquefaction plant, multiple cryogenic containers for road transportation, and regasification plants near customer locations.

“We are replicating this same model elsewhere in Africa, such as in Mauritania, where we are implementing similar LNG supply solutions for industrial operations, further solidifying our commitment to energy innovation and regional development,” added Shaaban.

The Elsewedy Industrial Development aims to attract more than $400 million from regional investors into the EIC, as well as create 50,000 jobs to support the country’s industrial growth and manufacturing strategy for 2025.

Mohamed AlKammah, CEO of Elsewedy Electric, Infrastructure Investments Sector, remarked: “This collaboration underscores our commitment to driving industrial growth and economic development in Tanzania. By leveraging our expertise in building and operating integrated industrial cities and partnering with Rosetta for Energy Solutions, we are set to develop the infrastructure utilities of Elsewedy Industrial City in Tanzania, ensuring a steady and reliable energy supply.”

Tanzania is one of several African countries looking to become part of the continent’s LNG exporters’ club by 2035, joining the ranks of Egypt, Algeria, Nigeria, Equatorial Guinea, Cameroon, Angola, and Mozambique.

African Energy Chamber (AEC) Executive Chairman NJ Ayuk believes that the gas from offshore sites in Tanzania known as Blocks 1, 2, and 4 could be used to supply a  15-mmtpa onshore LNG plant, however, he does not expect this to happen before 2030.