Wednesday, June 19, 2024

Zambia to get first LPG power plant

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Zambia is to set up its maiden Liquified Petroleum Gas (LPG) power plant which will generate up to 100MW to be added to the national grid.

The power plant will be developed through a joint venture company between Tanzania’s Taifa Gas Limited and Zambian consortium Delta Marimba Limited.

The US$100 million investment was announced simultaneously in Tanzania and Zambia by Taifa Group chairman, Mr. Rostam Aziz, and Delta Marimba’s representative, Mr. Padmore Muleya, respectively.

Mr. Muleya revealed that the power plant will be set up in northern Zambia, a strategic location from a gas logistics and supply perspective which also answers to the need for the geographical diversification of Zambia’s power generating assets.

“Zambia’s ambitious growth targets and the push for energy that is both competitively priced and environmentally conscious demand innovative solutions. This LPG-to-Power project fits this mold as it uses one of the cleanest thermal fuels available today, diversifies the country’s energy source mix, hence, contributing to de-risking our national energy portfolio and will open more opportunities for LPG-related power solutions,” Mr. Muleya stated.

LPG burns a lot cleaner than other thermal energy sources and releases much less carbon dioxide in comparison to diesel and coal, the other fuels for thermal power generation currently used in Zambia.

And Mr. Rostam Aziz credited Zambia’s favorable investment climate and the government’s policies for his company’s decision to invest in the Zambian power sector.

“Tanzania and Zambia share a profound historical connection, and there has never been a better opportunity to invest in Zambia. We are excited to contribute to Zambia’s energy landscape and foster closer ties between Tanzania and Zambia,” said Mr. Aziz.

This is the first major investment announced following Zambia’s US$6.3 billion debt restructuring agreement under the G20 Common Framework, an achievement hailed by both Mr. Aziz and Mr. Muleya as very progressive and a precursor of many large investments to flow into the Zambian economy like this one.

The 100MW LPG-to-Power project is expected to be executed and brought online within 24 months.

Taifa Gas is the largest LPG investor and infrastructure owner in Tanzania and East Africa.

It is involved in the entire LPG value chain from production to export. Its parent, the Taifa Group, has multi-million-dollar investments in power generation and other energy developments across East Africa and has also expressed interest to explore mining in Zambia, aside from energy.

Delta Marimba Limited is a consortium of Zambians that have come together to identify and participate in opportunities in the energy and resources sectors.

13 COMMENTS

  1. Fipwilafye mukulanda….Fipwilafye Zambia is getting this…Zambia is getting that….what happened to the Dubai MOUs……under UPND even a mere promise means an achievement…they’ve gone quite on Angola Pipeline……The Saudi Arabian investments….the list goes on and on…HH the demagogue President fooling gullible followers and its unfortunate that we don’t have serious opposition

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  2. Am lacking some few small tuma key facts here.

    1. Where is the gas coming from
    2. How is it being transported to Zambia
    3. Where is the plant going to be
    4. Where are the pylons and transformers going to be
    5. Who is paying for everything and when and how
    6. Who is profiting and when and how

    I could go on…

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  3. These are half baked articles lacking basic facts..what is so special about Zambia to invest in such a project when Tz is closer to the ocean. Why is it hard for the person writting this to give us names of the Zambians behind this consortium…this is why people speculate and think its ruling party officals and ministers!!

    • Yes, the LPG is mostly in Mozambique and Tanzania so any plans to excite the populations would be in those countries. Zambia is yet to fully exploit its abundant sunshine before deciding to move over to gas. Indeed most of our present day journalists lack critical analysis to say nothing about comprehension. That is why we receive half-baked stories nearly all the time.

    • Special Pepper – This is why I am saying this article lacks detail I doubt these guys will even put $100 million upfront I mean transporting LPG to Zambia just to burned in a powerplant…the numbers dont add up

  4. One thing I have noticed about UPND is that they’re very good at taking pictures and showing them to masses pretending like they’re really working and doing something but its smoke screen…and mind you all these trips are paid for by the Zambian Tax payer….traveling making personal deals and getting paid huge allowances…20 years from today ask them about this same Project and they will have no answer

  5. Dull writer ,who told that this is the first lpg plant in Zambia,don’t forget we used to have and it is still their zamox now trading as bocgases or afrox

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