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Dangote reach natural gas supply deal

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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/

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