Tanzania has announced a natural gas discovery estimated at 223 billion cubic feet in the Mnazi Bay area of the southern Mtwara region, marking its first reported discovery in more than a decade and raising expectations for increased domestic energy supplies.
Energy Minister Juma Zuberi Homera announced the find on Tuesday, October 27, following exploration drilling at the Kasa-1X ST2 well, jointly developed by the state-owned Tanzania Petroleum Development Corporation (TPDC) and French energy company Maurel & Prom.
Homera said the discovery could strengthen Tanzania’s energy security as electricity consumption and industrial activity increase. The government expects the additional gas to support power generation, industrial production and wider economic development.
The Kasa-1X ST2 well was part of a three-well drilling programme in the Mnazi Bay block. The other two wells, MB-5 and MS-2, are development wells intended to increase production from the existing field. According to the government, the two wells have already added more than 65 million cubic feet of gas per day to production capacity.
Maurel & Prom has indicated that production from the Kasa well could begin as early as November, with expected output of about 50 million cubic feet per day. However, the company’s technical assessment put the preliminary gas estimate at approximately 200 billion cubic feet, and the figure has not yet been publicly classified as a certified recoverable reserve. The difference between the company’s estimate and the government’s 223 billion cubic feet announcement has not been fully explained.
Gas central to Tanzania’s energy supply
Tanzania already has substantial natural gas resources, with total discovered resources estimated at 57.54 trillion cubic feet. Gas is a major source of electricity generation and is also used by industries, households and vehicles.
The Mnazi Bay field is one of the country’s two producing gas fields, alongside Songo Songo. Production from Mnazi Bay feeds infrastructure that includes the Madimba processing plant and a pipeline connecting the southern region to Dar es Salaam.
The government hopes the latest discovery will reduce exposure to fluctuations in imported energy prices and provide a more reliable supply for local businesses and households.
Homera also said TPDC was in discussions with four investors interested in developing small-scale liquefied natural gas projects. Such projects could expand the use of gas in transportation and industry while creating opportunities for local employment and investment.
Economic opportunities and challenges
The discovery could create additional government revenue through taxes, production-sharing arrangements and TPDC’s participation in the project. It may also support downstream industries that use natural gas to produce fertilisers, plastics and other petrochemical products.
However, the economic benefits will depend on further technical assessment, sustained production and investment in processing and distribution infrastructure. A preliminary estimate of gas in a reservoir does not necessarily represent the quantity that can be commercially recovered.
The government has also emphasised the importance of local participation in the petroleum industry, including employment, contracts for Tanzanian businesses and skills development.
The latest find adds to Tanzania’s efforts to expand domestic energy production and attract investment into its oil and gas sector. Its long-term contribution will depend on how efficiently the discovery is developed and how its benefits are distributed across the economy.
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