The Dubai-based Dodsal Group has made a major natural gas discovery in Tanzania and plans to invest an additional $300 million in the country over the next 24 months to support exploration and production there, it said on Monday.

The discovery in the Ruvu Basin near Dar es Salaam is estimated to contain over 2.7 trillion cu ft (TCF) of natural gas deposits with a value of $8 billion to $11 billion at current market prices, Dodsal said.

The company described the find as Tanzania's biggest onshore gas discovery, saying it would boost the nation's total estimated recoverable natural gas reserves to more than 57 TCF. Most of Tanzania's gas discoveries have so far been made in deep-sea offshore blocks.

In addition, a third Dodsal well at Mbuyu in Tanzania has found a large gas column which is estimated to contain up to 5.9 TCF of gas, the company said, adding that studies of the deposit were underway.

Dr Rajen A Kilachand, chairman and president of the Dodsal Group, said: “The discovery of natural gas reserves in Tanzania further strengthens our commitment to the nation to be a partner in the country’s all-round socio-economic progress.”

“Tanzania has tremendous potential in the hydrocarbon sector. When efficiently leveraged, this will bring incremental economic growth by assuring timely and ready supply of clean energy. We are fully committed to supporting the nation in this journey, underlined by the nine years of natural gas exploration that we have been undertaking.

“As a socially responsible organisation, our focus is to bring in added value across all aspects of our operation and supporting Tanzania in stimulating the local economy, creating new jobs for the Tanzanian youth and driving the growth of small & medium enterprises by building a strong local supply chain. The significant discovery of natural gas, in close proximity to Dar es Salaam, will boost the economy and strengthen its all-round competitiveness,” he added. – TradeArabia News Service & Reuters