Economics

Tanzania celebrates first natural gas discovery in more than 10 years

The energy minister described it as a "major milestone" for the East African nation.

Tanzania marks first natural gas discovery in over 10 years

The energy minister called it a "major milestone" for the East African nation

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

Energy Minister Juma Homera took part in a ceremony at the Kasa-1X ST2 well, which is jointly owned by state-owned Tanzania Petroleum Development Corporation (TPDC) and French oil company Maurel & Prom, to commemorate the event.

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

The new well is expected to begin production early next month and is meant to increase domestic supply.

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

Gas from the field will be used for domestic and industrial power generation, as well as for vehicles.

"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.

According to government statistics for 2024, natural gas made up nearly 80% of Tanzania's electricity generation sources.

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

Some Tanzanians have been converting their vehicles to dual-fuel systems, with locally available natural gas offering lower prices than petrol.

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

Commercialisation of these discoveries started in 2004. This led to further gas exploration onshore and offshore, including the largest single discovery of 2.7 trillion cubic feet of natural gas in 2016.

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