Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Petroleum and Natural Gas Engineering

This study investigates how much the natural gas in Tanzania contributes to the economy and how can such available domestic energy source help to generate great revenue that will benefit the communities. Natural gas is the domestic energy source in Tanzania. For many years, natural gas has been contributing majorly to the economic activities of Tanzania. For this reason, changes in natural gas contribution or consumption in any sector affects the economic growth of the country. This study also investigates the existing relationships between natural gas consumption in various sectors and economic growth in Tanzania.
Still to date, natural gas remains one of the world’s most stable sources of energy, and a foundation on which renewables can be built. After the natural gas in Tanzania begun commercial production in the year 2004, it has been contributing majorly to the country’s economy and it reflects a lot on the lives of the Tanzanians. The estimates of proven natural gas reserves of Tanzania are currently at 57.5 trillion cubic feet (TCF). Over recent years, Tanzania has exhibited enhanced and highly increased growth rate as well as the real GDP per capita. Tanzania natural gas market has had an incremental growth in terms of consumption from new customer connections and demand from power and energy, industries, residential and CNG-Vehicles. Natural gas is expected to enhance economic development and improve quality of life. The natural gas resources can be increased with future exploration activities. Geological potential is high. If more effective demand were created, active players will show up, explore for and develop the resource base. More investment in natural gas distribution is needed to serve and to meet natural gas demand as well as the future markets of Tanzania. The increasing in natural gas consumption in Tanzania is driven by the consumption of natural gas in power generation, Industries, CNG vehicles commercial, institution and households. Consumption of natural gas in generation of power and other industrial uses has a positive impact on the economic growth of Tanzania. For this reason, any changes in the natural gas consumption in the power generation sector have an impact on economic growth which is one of the key macroeconomic performance indicators.