The Tanzanian Government has signed a loan agreement with the Chinese Government for the construction of a 532 km gas pipeline from Mnazi Bay in the Mtwara region and Songo Songo in Kilwa District to Dar es Salaam, according to Tanzanian news service The Citizen.
Tanzanian Minister for Energy and Minerals William Ngeleja said the agreement was signed in Beijing, and that the new pipeline would have a capacity of 784 MMcf/d of gas, to be used for the production of 3,900 MW of electricity, according to The Citizen.
The news service went on to say that the loan will also finance the construction of two gas processing plants, and that currently experts from Ardhi University have started environmental and social impact assessment studies in areas that the pipeline will pass through, and where the gas processing plants will be installed.
The Citizen added that construction of the pipeline will start from mid-next month, with the whole project expected to reach completion by late March 2013.
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