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Wednesday, 25 September 2013

Tanzania to cash in on gas bonanza

Tanzania has closed a deal with Malaysian company Huchems Fine Chemical Corporation to invest US$800million dollars to build east Africa’s first ammonia-based chemical manufacturing plant. The plant will be located in Tanzania and will use country’s abundant natural gas resources. The parties expect to conclude a final agreement before the end of 2013.

The planned chemical plant represents an important development in the African energy and petrochemical sectors, tapping local energy supplies for domestic industrial production rather than export, creating locally produced, value- added chemical products that are critical to other sectors of the domestic economy, such as fertilizer for agriculture. The project is expected to create hundreds of stable manufacturing jobs, while increasing the availability and lowering the cost of key chemical products.