Transport and storage

Legal framework

What is the general legal framework governing the transportation and storage of oil and gas resources in your jurisdiction?

The right to store gas is vested in the National Oil Company on behalf of the government. The Energy and Water Utilities Regulatory Authority (EWURA) grants a processing, transportation or storage licence if it is satisfied that the applicant has:

  • taken into account the future development of the gas industry and its potential for competition;
  • sufficiently demonstrated assessment and accommodation of potential future market developments; and
  • declared that a gas processing facility will be located onshore.

A transportation licensee must:

  • provide transportation services to third parties in order to allow gas to be supplied to a buyer or eligible end user whenever requested at such tariffs, rates, charges and terms and conditions as may be prescribed by EWURA; and
  • provide interconnection services to any other regulated activity licensee or downstream operator as may be necessary to provide access to its transportation facilities.

Parties must only transport petroleum products using vehicles, vessels or facilities that comply with the standards set out by the Bureau of Standards.

Transportation

How is cross-border transportation of oil and gas resources regulated?

A party that intends to import, export or transit natural gas must apply to EWURA in writing for approval. EWURA will, on consultation with other relevant authorities, issue approval for the import, export or transit of natural gas.

Any petroleum product intended for export or designated for a specific project must be directed or used for such purposes. The term ‘export’ means the taking of petroleum or petroleum products outside national boundaries and includes the taking of such petroleum or petroleum products from one point to another within Tanzania.

Are there specific provisions governing marine and ground transportation of oil and gas resources?

Under the Petroleum (Marine Loading and Off Loading Operations) Rules 2018, ‘marine loading and offloading operations’ entail activities relating to receiving or discharging petroleum or a petroleum product from a marine vessel to a shore tank and vice versa.

An applicant for a petroleum marine loading and offloading operation licence must apply to EWURA using the appropriate form.

A party will not be issued a licence unless its application meets the necessary technical requirements, including a facility constructed in accordance with the approved specifications and adequately skilled personnel (the quality of petroleum or a petroleum product must be maintained as per Bureau of Standards specifications).

A licensee must comply with the requirements of all applicable environmental laws and standards relating to a facility.

Construction and infrastructure

How are the construction and operation of pipelines, storage facilities and related infrastructure regulated?

No party can construct a facility without seeking and obtaining EWURA approval.

An applicant for a petroleum pipeline operations licence must apply to EWURA by filling the appropriate form.

No party will be issued with a licence unless the application meets the necessary technical requirements, which include a pipeline constructed in accordance with internationally acceptable standards and adequately skilled personnel.

A licensee must comply with the requirements of all applicable environmental laws and standards relating to a licensed facility.

What rules govern third-party access to pipelines and related infrastructure?

Under the Petroleum (Pipeline Operations) Rules 2015, EWURA may request at its discretion that applicants for pipelines supply reasons why third-party access should not be provided.