Skip to main content

Dangote reach natural gas supply deal

Published by , 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

 EnviroTech

Ready to revolutionise the cement industry?

Join World Cement in Lisbon, 10 – 13 March 2024, for our first in-person conference and exhibition: EnviroTech.

This exclusive knowledge and networking event will bring together cement producers, industry leaders, technical experts, analysts, and other stakeholders to discuss the latest technologies, processes, and policies being deployed at the forefront of the cement industry’s efforts to reduce its environmental footprint.

Get your early bird tickets NOW »

 
 
 

Embed article link: (copy the HTML code below):


 

This article has been tagged under the following:

Dangote news


 

World Cement is not responsible for the content of external internet sites.