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Tanzania has stepped up efforts to expand its oil and natural gas industry, with Vice President Deogratius Ndejembi witnessing the signing of four petroleum exploration licences for the Tanzania Petroleum Development Corporation (TPDC), a day after the government announced the discovery of an estimated 223 billion cubic feet of natural gas at Mnazi Bay in Mtwara Region.
The two developments mark an expansion of Tanzania’s petroleum exploration programme as the government seeks to strengthen domestic energy security, increase natural gas production and create opportunities for investment, industrial development and employment.
The licences cover Eyasi-Wembere, Lindi–Mtwara, West Songo Songo and Mnazi Bay North, giving TPDC a more direct role in petroleum exploration while supporting the development of local technical expertise and institutional capacity.
Energy Minister Dr Juma Zuberi Homera said the allocation of the exploration areas reflected the government’s commitment to strengthening national participation in the petroleum industry and ensuring that Tanzania derives greater economic benefits from its natural resources.
Speaking at the signing ceremony, Dr Homera acknowledged President Samia Suluhu Hassan’s support for investment in petroleum exploration and welcomed the Vice President’s participation in the event, describing the licensing programme as an important step in the country’s long-term energy development.
The signing followed the October 27 announcement of a natural gas discovery at the Kasa-1X ST2 exploration well in Mnazi Bay, undertaken by TPDC in partnership with French energy company Maurel & Prom. The government estimated the discovery at 223 billion cubic feet, while the operator reported a preliminary estimate of approximately 200 billion cubic feet, subject to further technical evaluation.
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Dr Homera said the exploration well was expected to produce approximately 30 million cubic feet of natural gas per day for at least 10 years, depending on development and operational requirements. Two additional development wells, MB-5 and MS-2, were reported to have increased production by more than 65 million cubic feet daily.
Maurel & Prom reported that production at Mnazi Bay had reached approximately 130 million cubic feet per day in October, strengthening gas supplies for electricity generation and other domestic consumers.
Tanzania’s discovered natural gas resources are estimated at approximately 57.54 trillion cubic feet, including 47.13 trillion cubic feet offshore and 10.41 trillion cubic feet onshore. The latest exploration activities are expected to improve geological knowledge and identify additional commercially viable resources.
According to the Energy Minister, more than 80 percent of gas produced at Mnazi Bay is used for electricity generation through Tanzania Electric Supply Company facilities in Mtwara and Dar es Salaam, highlighting the field’s importance to the national electricity supply.
The government is also advancing the approximately 35-kilometre pipeline connecting the Ntorya gas field to the Madimba processing facility, with construction reported to have reached 74 percent completion. The project is expected to facilitate additional gas supplies for electricity generation, industries and other domestic users.
Natural gas consumption is expanding beyond power generation, with government figures indicating that Tanzania had established 22 compressed natural gas filling stations and 20 vehicle conversion workshops by September 2026. Six industries, 21 institutions and approximately 5,000 households were also reported to have connections to natural gas distribution infrastructure.
The government is seeking additional private investment in gas processing and distribution, including discussions between TPDC and four prospective investors interested in developing small-scale liquefied natural gas projects, three of which are proposed for Mtwara Region.
The expansion of petroleum activities is also generating opportunities for Tanzanian businesses and workers. Dr Homera said approximately 200 Tanzanians had secured employment through companies involved in the Mnazi Bay drilling programme, while 35 contracts valued at more than TZS 20 billion had been awarded to locally owned businesses.
TPDC increased its participating interest in the Mnazi Bay venture from 20 percent to 40 percent in 2024, with Maurel & Prom retaining 60 percent. The increased stake is expected to strengthen the government’s participation in project decisions and potential earnings from gas production.
The Petroleum Upstream Regulatory Authority welcomed the licensing programme and reaffirmed its commitment to overseeing exploration activities in accordance with petroleum legislation, environmental requirements and licence conditions, while encouraging greater participation by Tanzanian professionals and companies.
The developments form part of Tanzania’s broader efforts to expand energy infrastructure, strengthen domestic industrial capacity and develop petroleum resources in line with the country’s Development Vision 2050. Future production and investment will depend on exploration results, commercial viability, financing and the availability of infrastructure to deliver gas to domestic and regional markets.
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