Deputy Minister for Energy, Ms. Judith Kapinga has said that the Energy Sector is one of the three sectors in the country that have contributed to the growth of the National GDP in the period between 2015 and 2025.
Mrs. Kapinga said this while contributing to the Budget speech of the Ministry of Planning and Investment in Parliament in Dodoma yesterday.
“Mr. Chairman, if you look at the assessment between 2024 and 2025, the Energy Sector has done well in contributing to the National GDP, this sector has gone from 5.8 percent in 2015 and now we are talking about 14.4 percent”, said Mrs. Kapinga
She said the Energy Sector has been able to succeed due to the large investments being made in projects where she congratulated the President of the United Republic of Tanzania, Dr. Samia Suluhu Hassan for the large investment.
“In Gas and Oil, great achievements have been made, including the development of natural gas production and transportation projects, in the Mnazibay and Songosongo blocks, the Government has been able to produce 25.51 billion cubic feet over a period of four years for each.
She said the Government has signed a contract in the Ruvuma Ntorya block and is currently in the initial stages of producing and developing natural gas.
She said that over the past four years, the Energy Sector has achieved great success through the Tanzania Petroleum Development Corporation (TPDC) where the Government has been able to increase its stake in the MnaziBay block from 20% to 40%.
She said the natural gas sector is important due to shaping the use of other sectors including the use of compressed gas in vehicles and connecting the gas network to homes, projects that are being carried out in the Dar es Salaam, Mtwara and Lindi Regions.
Explaining about oil, he said the Government has been successful in managing and controlling the price ceiling of oil products, adding that the domestic price of oil products has continued to be resistance due to the Government subsidizing the product.
Regarding the joint fuel import system, he said that it has continued to improve.
Regarding the electricity sector, Mrs. Kapinga said that the sector is the heart of the economy in the country and noted that, in 2021, the electricity generation capacity was approximately 1,600 megawatts and currently it is approximately 4,000 megawatts.
She said these megawatts are due to the large investments that the Government has made in electricity generation projects including the Julius Nyerere strategic project.
In terms of electricity transmission projects, Mrs. Kapinga said that electricity transmission routes were approximately 6,000 kilometers in 2021 and currently there are approximately 8,000 kilometers and distribution routes have gone from 144,000 kilometers to 200,000 kilometers.
Describing rural electricity projects, Mrs. Kapinga said that over the past four years, the Government has completed the delivery of electricity to all villages and right now the Government is focused on providing electricity to the Suburbs.
