Tanzania has announced its first natural gas discovery in more than a decade, with an estimated 223 billion cubic feet of gas found at the Kasa-1X ST2 well in the Mnazi Bay area in the country’s south.
The discovery was announced at a ceremony attended by Energy Minister Juma Homera, who described it as a major milestone for Tanzania’s energy sector.
The well is jointly owned by the state-run Tanzania Petroleum Development Corporation (TPDC) and French oil and gas company Maurel & Prom.
Authorities expect production to begin early next month, with the new supply intended primarily to meet domestic energy needs.
New Gas Discovery to Support Tanzania’s Energy Needs
The discovery is estimated at 6.3 billion cubic metres of natural gas and comes as Tanzania seeks to meet rising energy demand driven by industrial expansion and other economic activities.
Homera said the find could help strengthen the country’s energy supply and support access to affordable and reliable energy.
Tanzania already holds substantial natural gas reserves, estimated at 57.54 trillion cubic feet, according to figures cited in the report.
Natural gas plays a major role in the country’s electricity sector. Government statistics for 2024 showed that it accounted for nearly 80 per cent of Tanzania’s electricity generation sources.
The additional discovery could therefore help reinforce the country’s domestic gas supply, although its longer-term impact will depend on production performance, infrastructure and demand.
Natural Gas Also Powers Vehicles
Beyond electricity generation, Tanzania has been encouraging the use of compressed natural gas (CNG) as an alternative fuel for vehicles.
Gas processing facilities and CNG filling stations have been established, particularly in Dar es Salaam, the country’s largest city.
Some motorists have converted their vehicles to dual-fuel systems, allowing them to use natural gas as well as petrol. Locally available gas can offer lower fuel costs than petrol, depending on conversion expenses, availability and prevailing prices.
The latest discovery could support the development of these domestic uses if additional gas reaches the market and the necessary distribution infrastructure is available.
A Look at Tanzania’s Natural Gas History
Tanzania’s natural gas exploration dates back to 1974, when the country made its first discovery on Songo Songo Island in the south-eastern Lindi region.
A second discovery followed at Mnazi Bay in the neighbouring Mtwara region in 1982. Commercialisation of the discoveries began in 2004, paving the way for further exploration both onshore and offshore.
One of the country’s largest discoveries came in 2016, when an estimated 2.7 trillion cubic feet of natural gas was found.
The latest find adds to Tanzania’s established gas resources and renews attention on the country’s potential to expand domestic energy production.
What the Discovery Could Mean for Tanzania
The immediate objective is to increase the gas available for local consumption, including electricity generation, industrial activity and vehicle fuel.
However, the scale of the economic benefits will depend on how quickly the well enters production, how much gas it can deliver commercially and whether supply can keep pace with growing demand.
For Tanzania, the discovery represents another step in developing its natural gas industry and using domestic resources to support its energy needs.
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