Tanzania’s Madimba, Songo Songo to Dar es Salaam Gas Pipeline Cost $1.3 Billion

The Tanzania Petroleum Development Corporation has released a statement on costs involved in the Madimba, Songo Songo to Dar es Salaam gas pipeline since construction commenced in 2013 to completion date in 2015.

The project which cost $1.225 billion was financed by the Chinese Government to the tune of $1.16 billion (95 percent total cost) while the Tanzania government contributed the remaining five percent.

The breakdown according to the Tanzania Petroleum Development Corporation (TPDC) are as follows:

  • Songo songo gas processing plant – $151,735,000
  • Mnazi Bay gas processing plant – $197,877,000
  • Gas Pipeline – $875,715,000

The Tanzania government is however quick to clarify that it has carried other additional costs outside the agreed five percent including: costs for foundation trench from Mtwara to Somanga Fungu, compressor acquisition costs in Songo Songo, additional contractual works, costs to expand the foundation trench from Somanga Fungu to Tegeta, costs of acquiring land where gas collection stations were to be built as well as land to build gas processing plants.

Following this increments TPDC adds that total costs absorbed by the government were up by $75 million.


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