BoT to manage natural gas revenue: govt

The government has entrusted the Bank of Tanzania (BoT) with the responsibility of managing revenues to be accrued through activities related to natural gas.

A policy statement, released last week by the ministry of Energy and Minerals said BoT would be responsible for the management of the Natural Gas Revenue Fund (NGRF) under the new natural gas policy.

BoT will assume new responsibilities of controlling the NGRF accrued by exploration, production, development, distribution, marketing and trading of natural gas.

“The Fund will be established and managed to ensure transparency and accountability over collection, allocation, expenditure and management of all natural gas revenues,” part of the policy statement reads. 

Clear guidelines shall be developed transparently or through national dialogue on the optimum short-term and long-term use of the fund, according to the policy statement.

The policy statement also states that in addition, transparent and sound fiscal management of the natural gas revenue spending shall be in accordance with national development plans and strategies.

Meanwhile, the permanent secretary in the ministry of Energy and Minerals, Mr Eliakim Maswi, was quoted as saying that the government was in the final stages of drafting a new law to regulate the gas sub-sector. 

Tanzania joins its neighbours in reconfiguring their hydrocarbon policies such as Uganda, Mozambique, and Kenya following a string of oil and gas discoveries that have made East Africa the continent’s latest hot spot for international oil and gas firms.

The new natural gas policy regulates mid and downstream activities of the industry, which include gas processing, liquefaction, transportation, storage, and distribution. It also has the domestic market taking priority over any exports.

A separate policy would be drafted to guide upstream activities such as exploration, development, and production stages of oil and gas.
Source: The Citizen, reported by Ludger Kasumuni from Dar es Salaam,Tanzania
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