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Friday, November 26, 2021


Dar es Salaam, 2021 | Songas Limited, a Tanzanian gas-to-power company, has paid the Government TZS 21.2 billion (USD 9.2 million) in dividends for the financial year 2021 due to its shareholding in the company.

Songas is a strategic partner with the Government in meeting the growing energy demand since it began operations in 2004. The company is owned by Government related entities; Tanzania Petroleum Development Corporation (TPDC) 28.69%, Tanzania Electric Supply Company Limited (TANESCO) 9.56% and Tanzania Development Finance Company Limited (TDFL) 7.65% as well as Globeleq 54.1%, a leading independent power producer solely focused in Africa.

In a statement, issued by the company, the Managing Director, Anael Samuel, said, ‘In 2021, TANESCO has received about TZS 4.4 billion (USD 1.9 million), TPDC TZS 11 billion (USD 5.2 million), while TDFL received about TZS 3.5 billion (USD 1.5 million). All amounts are subject to withholding tax.

Since it began operations, the company has paid TZS 157 billion in dividends to Government-owned entities. ‘The ongoing drought in the country demonstrates that an energy mix to complement hydropower is crucial to the sustainability of the energy sector in Tanzania’, said Anael. The Songas Ubungo Power Plant is an efficient world-class operation generating at 109% of the contracted capacity.

Songas contributes approximately 20% of the country’s electricity and is currently the cheapest thermal generator of electricity in East Africa. The demand for electricity in Tanzania is estimated to be growing at 10–15% per year, and the company is uniquely positioned to support the country’s industrialization.

By using domestic gas instead of imported fuel, TPDC estimates that since Songas began its operations in 2004, it has saved the Tanzanian economy more than TZS 11 trillion.

About Songas:

Songas is a leading Tanzanian gas-to-power company generating 180 MW (approximately 20%) of Tanzania’s electricity supplied to the national grid and distributed by the national utility, TANESCO. It also supplies natural gas to industrial customers to use in manufacturing processes. Since 2004, Songas has been a reliable and low-cost provider of electricity to TANESCO. Songas sells 180MW of electricity to TANESCO at an all-in tariff of 135 TZS/kWh, and TANESCO subsequently sells it to consumers at 270 TZS/kWh, including distribution costs. Last year Songas provided 21% of the grid’s demand for electricity, from 13% of the generation capacity.


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