Tanzania has made a significant natural gas discovery in the Mnazi Bay area, marking the first such find in over a decade. The discovery was announced at the Kasa-1X ST2 well, jointly owned by the state-owned Tanzania Petroleum Development Corporation (TPDC) and French oil firm Maurel & Prom. Energy Minister Juma Homera attended a ceremony to mark the occasion, highlighting the importance of the find.
The estimated 223 billion cubic feet (6.3 billion cubic metres) of natural gas discovered is considered a "major milestone" in the development of Tanzania's small oil and gas sector. The new well is expected to start production early next month, with the aim of boosting domestic supplies. This development is particularly significant for Tanzania, which has existing natural gas reserves of 57.54 trillion cubic feet.
According to Energy Minister Juma Homera, the discovery is crucial in ensuring the country has reliable, clean, and safe energy at affordable costs. This is especially important given the increasing demand for energy due to industrial growth and other economic activities. Natural gas currently accounts for nearly 80% of Tanzania's electricity generation, as per government statistics for 2024.
In recent years, Tanzania has encouraged the use of compressed natural gas to power vehicles, with natural gas plants and filling stations set up mostly in Dar es Salaam. Many Tanzanians have been converting their vehicles to a dual-fuel system, allowing them to benefit from cheaper prices compared to petrol. This development is expected to further promote the use of natural gas in the country.
Tanzania has a history of natural gas discoveries, with the first find made in 1974 on Songo Songo Island in the south-east Lindi region. A second discovery was made at Mnazi Bay in 1982, followed by the commercialisation of these discoveries in 2004. This led to further gas exploration both onshore and offshore, including the largest single discovery of 2.7 trillion cubic feet of natural gas in 2016.
The latest discovery is expected to contribute to Tanzania's energy security and economic growth. The country's energy sector has been working to increase domestic supplies and promote the use of natural gas. With the start of production at the Kasa-1X ST2 well, Tanzania is poised to further develop its oil and gas sector.
The government is optimistic about the potential of the natural gas sector to drive economic growth and improve the lives of Tanzanians. As the country continues to explore and develop its natural gas resources, it is expected to become a significant player in the regional energy market. The discovery is a welcome development for Tanzania's energy sector, which has been working to increase domestic supplies and promote economic growth.
Key points
- The discovery of 223 billion cubic feet of natural gas in the Mnazi Bay area marks a significant milestone in Tanzania's oil and gas sector.
- The new well is expected to start production early next month, with the aim of boosting domestic supplies.
- Natural gas currently accounts for nearly 80% of Tanzania's electricity generation.
