Dangote Cement to operate gas power plant in Tanzania by September

Dangote Cement plans is to set up a gas-powered plant in Tanzania by September to reduce its operational costs and its reliance on diesel.

Dangote annunced that it has invested US$90m in the construction of the coal/gas-fired power station to be fed with natural gas at a negotiated rate by the Tanzania Petroleum Development Corporation.
Dangote stated that the Mtwara plant increased volumes by more than 64 per cent to nearly 0.388Mt in its 1H17 results, pushing the six months sales to more than 400,000t.

"The factory is still reliant on diesel generators, which results in net income losses that weigh on our operations outside of Nigeria," the firm said.

"However, we expect to have gas turbines installed by September, which will immediately bring the plant into profitability."