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TANZANIA: Heavy Rain, COVID-19 See Less Demand for Natural Gas H1 2020

TANZANIA: Heavy Rain, COVID-19 See Less Demand for Natural Gas H1 2020

There was marginal decline in industrial demand due to weakened activity as a result of COVID-19  as well as heavy rain that resulted more reliance of hydro-power generated electricity in Tanzania. According to Wentworth Resources COVID-19 restictions and a prolonged rainy season in January and June (normally March to late May) resulted to less industrial demand.

The company produced  58.28 MMscf/day down from  66.17 MMscf/day a similar period last year for the period to 30 June 2020 with higher demand expected in the second half of the year. The effects were however mitigated by the continued growth of the Tanzania economy with recent data from the African Development Bank suggesting Tanzania’s projected GDP growth in 2020 is set to be the highest in the East Africa region at 5.2%.

Katherine Roe, CEO, commented:

‘Despite a challenging macroeconomic environment due to the ongoing impacts of the COVID-19 pandemic, Wentworth has continued to demonstrate business resilience, robust financial and operational performance which has underpinned our decision to increase our interim dividend.

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Source: OilnewsKenya

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