Tanzania Announces First Natural Gas Discovery in a Decade

Discovery details

BBC News reports that Tanzania announced a natural gas discovery estimated at 223 billion cubic feet at the Kasa-1X ST2 well in the Mnazi Bay area in the south of the country. It is the first such find in a decade.

Energy Minister Juma Homera attended a ceremony at the well, which is jointly owned by the state-owned Tanzania Petroleum Development Corporation and French oil firm Maurel & Prom. He described the discovery as a major milestone for the East African nation's small oil and gas sector.

The new well is expected to start production early next month and is intended to boost domestic supplies, according to the report.

Energy context

Tanzania has existing natural gas reserves of 57.54 trillion cubic feet. Homera said the discovery is important for ensuring reliable, clean and safe energy at affordable costs as demand increases with industrial growth and other economic activities.

Natural gas accounted for nearly 80% of Tanzania's sources of electricity generation in 2024, according to government statistics cited by BBC News.

The country has also encouraged the use of compressed natural gas to power vehicles, with plants and filling stations set up mostly in Dar es Salaam, and some Tanzanians have converted vehicles to dual-fuel systems to take advantage of cheaper locally available gas.

Tanzania's first natural gas discovery was made in 1974 on Songo Songo Island, followed by a second at Mnazi Bay in 1982. Commercialisation began in 2004, and the largest single discovery of 2.7 trillion cubic feet was made in 2016.