Tanzania celebrates first natural gas discovery in more than 10 years

Tanzania has marked a significant turning point in its domestic energy sector with the announcement of a natural gas discovery in the Mnazi Bay area located in the south of the country. According to reporting from the BBC and Business Insider Africa, Energy Minister Juma Homera attended a ceremony at the Kasa-1X ST2 well to mark the occasion. Homera described the discovery as a major milestone for the East African nation, noting that it represents the first domestic natural gas find in more than 10 years.

The newly discovered gas deposit at the Kasa-1X ST2 well is estimated at 223 billion cubic feet, which is equivalent to 6.3 billion cubic metres. Official reporting notes that the well is jointly owned by the state-owned Tanzania Petroleum Development Corporation and the French oil firm Maurel & Prom. Business Insider Africa adds that the companies drilled three wells — identified as MB-5, MS-2, and Kasa-1X ST2 — in their efforts to boost the nation's domestic gas supply. Maurel & Prom has indicated that production from the new well is scheduled to commence early next month, with the extracted fuel earmarked to support domestic and industrial power generation, as well as powering vehicles.

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Government statistics cited across the reporting indicate that natural gas accounted for nearly 80 percent of Tanzania's electricity generation sources. In recent years, authorities have actively promoted compressed natural gas to power vehicles, establishing natural gas plants and filling stations primarily in the largest city, Dar es Salaam. This push has led some motorists to convert their vehicles to dual-fuel systems, taking advantage of locally available natural gas as a cheaper alternative to petrol.

Prior to this announcement, Tanzania's existing natural gas reserves stood at 57.54 trillion cubic feet, according to coverage from The Star, Kenya. The nation's history with natural gas dates back to the initial 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 resources began in 2004, propelling further onshore and offshore exploration that included a notable single discovery of 2.7 trillion cubic feet of natural gas in 2016.

The latest discovery arrives as Tanzania pursues a massive $42 billion liquefied natural gas development. Led by Norway's Equinor and British energy giant Shell, alongside other participants including ExxonMobil, Pavilion Energy, Medco Energi, and the Tanzania Petroleum Development Corporation, this proposed venture is expected to unlock 47.13 trillion cubic feet of natural gas reserves primarily for export, while also allocating a portion to serve domestic energy needs. Furthermore, the energy ministry is engaging four international investors interested in developing smaller-scale liquefied natural gas projects to broaden the commercial utilisation of the country's gas wealth.

These national energy ambitions coincide with broader developments across East Africa's energy industry. Neighbouring Uganda plans to initiate its first oil exports through Tanzania's port of Tanga, a development that will further strengthen Tanzania's evolving role as a regional energy transportation and export hub.

Production at the Kasa-1X ST2 well is slated to begin early next month.