Tanzania Discovers 223 Billion Cubic Feet of Natural Gas in Mtwara
Tanzania has announced the discovery of an estimated 223 billion cubic feet of natural gas in the Mnazi Bay Block in the Mtwara Region. Announced on October 27, 2026, the discovery is the country’s first reported new gas find in more than a decade and could help expand domestic energy supplies and support industrial development.
TPDC and Maurel & Prom Complete Exploration Drilling
The discovery followed drilling of the Kasa-1X ST2 exploration well by the Tanzania Petroleum Development Corporation (TPDC) in partnership with French energy company Maurel & Prom.
Energy Minister Juma Homera said the well is expected to produce approximately 30 million cubic feet of gas per day for at least 10 years. Actual output will depend on reservoir performance and the development plan.
Two other wells, MB-5 and MS-2, have also increased production by more than 65 million cubic feet per day, according to the minister.
Implications for Tanzania’s Energy Security
Natural gas is an important source of electricity generation in Tanzania. More than 80 percent of gas produced in the Mnazi Bay Block is used by Tanzania Electric Supply Company (TANESCO) power plants in Mtwara and Dar es Salaam.
Additional domestic gas supplies could reduce exposure to imported energy, strengthen energy security and help meet rising demand from industrial expansion. The eventual effect on energy costs will depend on development expenses, processing and transport infrastructure, and supply arrangements.
Investment Opportunities in Gas and Downstream Industries
The government expects the discovery to generate public revenue through taxes, profit-gas allocations and TPDC earnings. Greater gas availability could also support downstream industries, including the production of fertilisers, plastics and other petrochemical products.
TPDC is reportedly in discussions with four investors interested in developing small-scale liquefied natural gas (LNG) projects, three of which are expected to be located in Mtwara. These projects could expand the use of natural gas in industry and transport.
Outlook for Tanzania’s Energy Market
The discovery could attract further investment to southern Tanzania’s energy sector, including drilling services, gas-processing equipment, pipelines, power generation and downstream manufacturing.
Turning the estimated resource into sustained production and economic benefits will require further technical assessment, investment and suitable infrastructure.
