TPDC and ESSA Sign Preliminary Agreement for Natural Gas Supply, Paving the Way for a Major Fertilizer Plant in Mtwara

 TPDC and ESSA Sign Preliminary Agreement for Natural Gas Supply, Paving the Way for a Major Fertilizer Plant in Mtwara

By Our Correspondent, Dar es Salaam

The Tanzania Petroleum Development Corporation (TPDC) and Indonesian company Essa have signed a preliminary agreement for the supply of natural gas, a step aimed at facilitating the construction of a major fertilizer plant in the Mtwara region.

The agreement, signed today in Dar es Salaam, lays the foundation for collaboration between the two parties, with natural gas set to serve as the primary raw material in fertilizer production in the country.

Speaking at the event, Essa’s Director, Mr. Rahul Puri, said the project is being developed in partnership with various stakeholders including TPDC, TFRA, TFC, and TIC. He emphasized their commitment to helping Tanzania produce enough fertilizer for both domestic use and export.

“We want this plant to belong to Tanzanians and to be beneficial to farmers. We have agreed with TPDC to ensure that the necessary volumes of gas are made available so that preparations for the plant can begin promptly,” said Mr. Puri.

On his part, Mr. Deric Moshi, TPDC’s Director of Planning and Investment, said the agreement marks the beginning of detailed technical and commercial preparations. He clarified that TPDC will serve as the main supplier of gas under the preliminary agreement.

“We are continuing our efforts to boost gas production through new wells, to meet the needs of industries like this fertilizer plant and other strategic projects,” Moshi stated.

Chairman of the Tanzania Fertilizer Regulatory Authority (TFRA), Dr. Anthony Diallo, explained that the project will significantly help address the shortage of fertilizer among Tanzanian farmers.

“Tanzania imports over one million tons of fertilizer annually. This plant will reduce that burden and improve agricultural productivity,” Dr. Diallo pointed out.

Meanwhile, the Ambassador of Indonesia to Tanzania, His Excellency Yogo, emphasized that the project is a testament to the economic cooperation between the two countries and will bring direct benefits to the people.