Tanzania has made a significant gas discovery in the Mnazi Bay Block, located in Mtwara. The discovery, announced by Energy Minister Juma Zuberi Homera on October 27, 2026, adds 223 billion cubic feet of gas to the country's reserves. The find was made at the Kasa-1X ST2 exploration well, drilled by the Tanzania Petroleum Development Corporation in partnership with France's Maurel & Prom.
The Kasa-1X ST2 well is expected to produce approximately 30 million cubic feet of gas daily for at least 10 years, according to Minister Homera. Maurel & Prom has stated that first production could begin as early as November 2026. This discovery marks Tanzania's first reported gas find in over a decade, and it is expected to strengthen the country's near-term domestic gas supply.
The Mnazi Bay Block has been the focus of recent drilling activities, with three wells drilled, including Kasa-1X ST2, MB-5, and MS-2. The MB-5 and MS-2 wells have increased field output by about 65 million cubic feet daily, according to Maurel & Prom's 2026 update. The company's working-interest production averaged 67 million cubic feet daily during the first nine months of 2026, a 12% increase from the same period in 2025.
Maurel & Prom has reported that total field production has reached approximately 130 million cubic feet daily, with its working-interest share standing at 78 million cubic feet daily. The discovery of the Kasa-1X ST2 well adds depth to Tanzania's gas supply, rather than replacing existing production. This development is significant for the country's industrial planning, as it provides a new source of gas for power generation and industrial use.
The gas discovery has immediate implications for investors, particularly in the domestic market. Over 80% of Mnazi Bay gas currently supplies electricity generation at Tanzania Electric Supply Company plants in Mtwara and Dar es Salaam. The new discovery supports Tanzania's efforts to limit its exposure to imported energy while expanding power availability.
The discovery presents opportunities for investors in various sectors, including upstream drilling, field services, and processing equipment. As operators prepare the new well for production, there will be a demand for equipment and services. Power generation is another area that could benefit, as a more reliable gas supply can support new generation capacity and improve utilisation at existing plants.
Infrastructure development is also likely to be a key area of focus, with processing facilities, gathering systems, and pipelines needed to efficiently move gas to power plants and industrial users. With the Kasa-1X ST2 well expected to produce for at least 10 years, the discovery provides a long-term opportunity for investors to participate in Tanzania's energy sector.
Key points
- The Kasa-1X ST2 well is expected to produce approximately 30 million cubic feet of gas daily for at least 10 years.
- The discovery adds 223 billion cubic feet of gas to Tanzania's reserves, marking the country's first reported gas find in over a decade.
- The gas discovery supports Tanzania's efforts to limit its exposure to imported energy while expanding power availability.
