Tanzania celebrates first natural gas discovery in more than 10 years

Tanzania has announced a significant discovery of natural gas in the Mnazi Bay area in the south of the country - the first such find in a decade.

Energy Minister Juma Homera attended a ceremony at the Kasa-1X ST2 well, which is jointly owned by state-owned Tanzania Petroleum Development Corporation (TPDC) and French oil firm Maurel & Prom, to mark the occasion.

He said the estimated 223 billion cubic feet (6.3 billion cubic metres) discovery was a "major milestone" in the development of the small oil and gas sector in the East African nation.

The new well is expected to start production early next month and is intended to boost domestic supplies.

Tanzania has existing natural gas reserves of 57.54 trillion cubic feet.

"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," Homera said.

Natural gas accounted for nearly 80% of Tanzania's sources of electricity generation, according to government statistics for 2024.

In recent years, the country has also encouraged the use of compressed natural gas to power vehicles, with natural gas plants and filling stations set up mostly in the largest city, Dar es Salaam.

Some Tanzanians have been converting their vehicles to a dual-fuel system - with the locally available natural gas allowing for cheaper prices than petrol.

Tanzania made its first natural gas discovery in 1974 on the Songo Songo Island in the south-east Lindi region, followed by a second discovery at Mnazi Bay in neighbouring region of Mtwara in 1982.

The commercialisation of these discoveries began in 2004. This propelled further gas exploration both onshore and offshore, with the largest single discovery of 2.7 trillion cubic feet of natural gas in 2016.

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