Tanzania Discovers 223 Billion Cubic Feet of Natural Gas in Mnazi Bay

Tanzania has announced a major natural gas discovery in the Mnazi Bay area in the country’s south, marking its first reported find of this kind in a decade and raising hopes of strengthening domestic energy supplies.

The discovery, estimated at 223 billion cubic feet (6.3 billion cubic metres), was announced during a ceremony at the Kasa-1X ST2 well attended by Energy Minister Juma Homera.

The well is jointly owned by the state-run Tanzania Petroleum Development Corporation (TPDC) and French energy company Maurel & Prom.

Homera described the discovery as a “major milestone” for Tanzania’s oil and gas sector, saying it could help meet rising energy demand driven by industrial expansion and wider economic activity.

New Well Expected to Begin Production Soon

Authorities expect the newly discovered gas resource to begin production early next month, with the initial focus on strengthening supplies for domestic consumption.

Homera said the discovery was important for improving the reliability and affordability of energy as Tanzania continues to expand its industrial capacity.

“The discovery is important in ensuring the country has reliable, clean and safe energy at affordable costs, particularly at a time when demand is increasing due to industrial growth and other economic activities,” he said.

The project is expected to support electricity generation and industrial operations, while also contributing to the country’s growing use of natural gas as an alternative fuel for vehicles.

However, the estimated size of the discovery does not necessarily represent the amount of gas that can ultimately be recovered commercially. Production levels will depend on further technical assessments and the development of the well.

Natural Gas Central to Tanzania’s Energy Supply

Tanzania already has substantial natural gas resources, with existing reserves estimated at 57.54 trillion cubic feet.

Government statistics for 2024 indicated that natural gas accounted for nearly 80 per cent of the country’s electricity generation sources, highlighting its importance to the national power system.

The new discovery could provide additional support for domestic energy production as demand rises from households, businesses and industrial facilities.

Gas from the Mnazi Bay area is expected to be used for power generation and industrial activities, helping support economic development and reduce pressure on other energy sources.

Natural Gas Gains Ground in Transport

Tanzania has also promoted the use of compressed natural gas (CNG) to power vehicles, particularly in Dar es Salaam, the country’s largest city.

Natural gas infrastructure, including filling stations, has been developed to support the growing number of motorists converting their vehicles to dual-fuel systems.

For some drivers, CNG offers a potentially cheaper alternative to petrol, using gas produced locally rather than relying entirely on conventional liquid fuels.

The expansion of domestic gas production could help support this transition, provided sufficient infrastructure and reliable distribution systems are available.

A History of Gas Exploration in Tanzania

Tanzania’s natural gas exploration dates back several decades. The country’s first discovery was made in 1974 on Songo Songo Island in the Lindi region, followed by another discovery at Mnazi Bay in the neighbouring Mtwara region in 1982.

Commercialisation of the discoveries began in 2004, encouraging further exploration both onshore and offshore.

A major discovery of approximately 2.7 trillion cubic feet of natural gas was reported in 2016, representing one of the largest individual finds in the country’s exploration history.

The latest discovery comes after a decade without a comparable reported find, renewing attention on Tanzania’s potential to expand its domestic gas industry.

Economic Opportunities and Future Energy Development

The Mnazi Bay discovery could strengthen Tanzania’s position as an East African energy producer by adding to the resources available for domestic power generation and industrial development.

If production begins as anticipated, the gas could help meet rising demand and support activities ranging from manufacturing to transport.

The longer-term economic benefits will depend on the well’s commercial performance, investment in infrastructure and the government’s ability to manage the resource sustainably.

As Tanzania advances its energy strategy, the discovery represents a new opportunity to build on its existing natural gas sector and improve the availability of energy for households, businesses and industry.