23 August 2018 : The cement giant and the most capitalized stock on the exchange is now all set to generate electricity for the production of cement at Dangote’s Mtwara Plant using Natural Gas. For this, Dangote cement has signed a 20-year deal with the Tanzania Petroleum Development Corporation ( TDPC )

The Mtwara plant is expected to convert to gas in the next 2 months and increase its power output to 40 MW ( from 22 MW). This conversion will cost $876 million. So we can expect the electrify generation two months from now.

The firm has increased its cement production from 2,500 tonnes/day to 5,00o tonnes per day owing to the low supply and price increase, but is expected to further up its production to 6,000 tonnes per day once the natural gas conversion starts.

This conversion from diesel to natural gas will reduce their operational costs which in turn will translate to the price of the finished product. Consumer’s wallets sigh in relief !

With the factory expected to consume 8 million cubic feet of natural gas, this increases the total natural gas consumption( by factories ) in the country to 23 million cubic feet per day. This replaces the requirement for 6 million liters of diesel per month.

The entire project of gas to electricity conversion is divided in two phases, where ( DANGCEM ) will invest $ 915,953 in the first phase, while TDPC invests about $ 3.75 million for the installation of another natural gas pipeline.

Reporting for EasyKobo on Thursday ,23 August 2018 in Lagos, Nigeria