MTWARA, Tanzania, October 27, 2026 — Tanzania has announced a natural gas discovery estimated at 223 billion cubic feet at Mnazi Bay in the country’s southeast. Energy Minister Juma Zuberi Homera said the find could strengthen supplies to power plants and industry.
The discovery follows the drilling of the Kasa-1X ST2 exploration well by the Tanzania Petroleum Development Corporation (TPDC) and its partner Maurel & Prom. The minister described it as the country’s first new natural gas discovery since 2015.
The well is expected to produce about 30 million cubic feet a day for at least ten years, he said. However, the statement provided does not specify a production start date or the technical classification of the announced volume. The commercially recoverable quantity therefore remains to be established.
Two other wells in the block, MB-5 and MS-2, have increased production by more than 65 million cubic feet a day, according to the minister.
The immediate significance concerns domestic energy supply. Homera said more than 80 per cent of the gas produced at Mnazi Bay supplies TANESCO power plants in Mtwara and Dar es Salaam.
Higher output could meet industrial demand and reduce the country’s exposure to fluctuations in the cost and availability of imported energy, he said. No estimate was presented of potential savings for electricity consumers or industrial users.
The government expects additional revenue from its share of profit gas under the production-sharing agreement, taxes and TPDC’s participation in the project. According to the minister, TPDC increased its stake in Mnazi Bay from 20 per cent to 40 per cent in 2024.
Homera also discussed using gas as feedstock for fertiliser and petrochemical production. The statement, however, identifies no committed projects in those sectors.
TPDC is holding discussions with four investors about small-scale liquefied natural gas projects, three of which would be located in Mtwara. No investment amounts, final investment decisions or commissioning dates were specified.
On local benefits, the minister reported that about 200 Tanzanians were employed through domestic companies and that 35 contracts worth more than TSh20 billion had been awarded to local businesses. The period covered by those figures was not indicated.
Tanzanians account for 95 per cent of the workforce in gas production and processing activities, he added. The Madimba processing plant is operated entirely by Tanzanian personnel, according to the minister.
He also cited education, health, environmental protection and women’s empowerment programmes supported by TPDC and Maurel & Prom in neighbouring communities.
The discovery opens new prospects for Tanzania’s gas sector. Its effects on electricity reliability, public revenue and industrial development will depend on recoverable volumes, the development timetable and the infrastructure needed to deliver gas to markets.
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