Media Wire Express Correspondent
Zanzibar, under the leadership of President Dr. Hussein Ali Mwinyi, is positioning itself as a significant player in the regional energy market.
During the inauguration of the first liquefied petroleum gas (LPG) terminal at the port in North Unguja Region, President Mwinyi emphasized the potential for Zanzibar to supply oil and gas products to neighboring countries, enhancing energy security and regional economic cooperation.
The newly launched terminal, operated by Oryx Energies, marks a significant milestone in Zanzibar’s energy sector. It aims to ensure a reliable supply of LPG to the local population, thereby improving energy access and affordability. President Mwinyi called on more companies to invest in building additional infrastructure, such as oil and gas depots, to bolster the port’s capabilities and facilitate larger-scale energy exports.
In a broader context, this initiative is part of Zanzibar’s strategic plan to develop its offshore oil and gas resources. Earlier this year, the government launched its first licensing round for oil and gas exploration, inviting bids for eight offshore blocks covering 31,883 square kilometers around Unguja and Pemba Islands. These blocks, situated in water depths ranging from 500 to 3,000 meters, are expected to attract significant international interest due to their untapped potential.
The licensing round is a key component of a five-year exploration roadmap aimed at stimulating investment in Zanzibar’s hydrocarbon sector. The government has revised its legal and regulatory frameworks to create a favorable environment for investors, ensuring robust protection for private investments and attractive fiscal terms.
ReadMore;Tanzania Focuses on Alternative Energy Solutions
President Mwinyi highlighted the historical context of Zanzibar’s oil and gas exploration efforts, which began in the 1950s with British Petroleum (BP) and Shell conducting initial investigations. The renewed focus on this sector is expected to accelerate economic growth, reduce poverty, and create employment opportunities as part of the broader blue economy agenda. The blue economy policy prioritizes sustainable development of maritime resources, including fisheries, tourism, and energy.
The Zanzibar Petroleum Regulatory Authority (ZPRA) and the Zanzibar Petroleum Development Corporation (ZPDC) are spearheading the regulatory and operational aspects of this initiative. The government is keen to ensure that the exploration and eventual production activities are conducted safely and in an environmentally responsible manner, maximizing benefits for the local population.
Investors have until September 2024 to submit their bids, with the evaluation process scheduled to conclude by November. The government anticipates strong competition for the blocks, given the strategic location and promising geological data. This move is expected to transform Zanzibar into a regional energy hub, contributing to the island’s economic resilience and sustainability.
Zanzibar’s proactive approach to developing its oil and gas sector, coupled with strategic investments in infrastructure like the LPG terminal, underscores its commitment to becoming a key energy supplier in East Africa
