Japan’s Koyo Corporation plans to invest $1 billion in a gas-fired power plant in Tanzania, which has made huge natural gas discoveries, the office of Tanzania’s prime minister said on Friday.
Tanzania announced in February it had discovered an additional 2.17 trillion cubic feet (tcf) of possible natural gas deposits in an onshore field, raising its total estimated recoverable natural gas reserves to more than 57 tcf.
East Africa’s second-biggest economy wants to use some of its gas reserves to end power shortages and boost industrial growth.
“Koyo Corporation plans to build a 1,000 megawatt (MW) gas-fired power plant in Tanzania,” the prime minister’s office said in a statement.
The Japanese firm was also exploring possibilities of investing in solar power plants in Tanzania, it added.
Tanzania’s energy ministry said in a separate statement the country planned to build a 100 MW geothermal power plant within the next seven years.
Tanzania aims to add about 2,000 MW of new gas-fired electricity generation by 2018 to increase Tanzania’s generating capacity to 10,000 MW by 2025.
Investors have long complained that lack of reliable power was one of the obstacles of doing business in the African nation.