Diana Byonge

Diana Byonge


Tanzania Petroleum Development Corporation (TPDC)


SESSION 27:  Natural Gas Pricing and Policy for Petrochemical Industry

Diana Byonge & Lwaga Atupele Kibona

Natural gas is used as the feedstock as well as an alternative energy for petrochemical industry. This means, the price of natural gas to be used in petrochemical industry affects to high extent the price of the final product. Based on this fact, countries which are amid of industrialization can’t ignore the cost of natural gas since they will determine viability of most of petrochemical projects.

There have been different policies and pricing methodologies in countries which have succeeded in developing petrochemical industry. In most cases, governments provide favorable policies depending on the nature of the product, subsidizes the input prices and sometimes the output prices for petrochemical products produced and consumed in the country. 

This paper will survey policies and pricing mechanism around the World for the countries which have developed petrochemical industry using natural gas. The paper will also recommend on the policies and natural gas pricing methodology that will foster industrialization in Tanzania as well as in East Africa Region.