Dangote reach natural gas supply deal
Published by Joseph Green,
Editor
World Cement,
According to the latest Reuters report, Tanzania and Dangote Cement have reached a deal on the supply of natural gas to the company's manufacturing plant in the East African country after negotiations stalled over prices.
The US$500 million cement factory in the southeastern Tanzanian town of Mtwara, set up last year with an annual capacity of 3 million t, runs on expensive diesel generators and has sought government support to reduce costs.
But the negotiations had stalled with the state-run Tanzania Petroleum Development Corporation saying the company was seeking "at-the-well prices".
After discussions with Aliko Dangote, the Tanzanian President announced said the issue has been resolved with gas supplies to be sold at a “reasonable" tariff.
The company plans to roll out plants across Africa. In Tanzania, Dangote is seeking to double the country's annual output of cement to 6 million t.
Read the article online at: https://www.worldcement.com/africa-middle-east/12122016/dangote-reach-natural-gas-supply-deal/
You might also like
World Cement Podcast
In the latest episode of the World Cement Podcast, Senior Editor David Bizley is joined by Dr Andrew Minson of the GCCA to discuss the ins and outs of the recently launched Low Carbon Ratings (LCR) system.
Molins announce first quarter results
Net profit reached €48 million, equivalent to earnings per share of 0.73 euros, 6% lower than the same period of the previous year.
