The Tanzanian government has announced a significant natural gas discovery in the Mtwara Region, with estimated reserves of 223 billion cubic feet. The discovery was made at the Kasa-1X ST2 exploration well, drilled by the Tanzania Petroleum Development Corporation (TPDC) and its operating partner, France's Maurel & Prom. This marks the first new natural gas find in Tanzania since 2015.
According to Maurel & Prom's activity report released on 22 October 2026, the estimated gas find is approximately 200 billion cubic feet gross, or 120 billion cubic feet net to the company. The Kasa well is expected to produce about 30 million cubic feet of gas per day for at least 10 years. Maurel & Prom estimates a gross production potential of 50 million cubic feet per day. The company holds a 60% interest in the Mnazi Bay licence.
The Mnazi Bay gas field has seen increased production recently, with the drilling of two additional wells, MB-5 and MS-2. These wells have raised production by more than 65 million cubic feet per day, according to the Minister for Energy, Dr Juma Zuberi Homera. Current output has reached about 130 million cubic feet per day, with a combined production potential of nearly 200 million cubic feet per day.
Maurel & Prom's working-interest gas production at Mnazi Bay averaged 67.0 million cubic feet per day in the first nine months of 2026, up 12% year on year. The company's sales in Tanzania rose 62% to USD 63 million during the same period. More than 80% of the gas produced at Mnazi Bay is used for electricity generation at Tanzania Electric Supply Company (TANESCO) power plants in Mtwara and Dar es Salaam.
The TPDC is in discussions with four investors planning small-scale liquefied natural gas (LNG) projects, three of which are located in Mtwara. This development is part of efforts to further utilize Tanzania's natural gas resources. The Mnazi Bay licence is governed by a Production Sharing Agreement signed in 2004 by Artumas, TPDC, and the then Ministry of Energy and Minerals.
Maurel & Prom entered the Mnazi Bay licence in 2009 and has been delivering gas through the 542-kilometre Mtwara-Dar es Salaam pipeline under a 2014 gas sales agreement with TPDC. In 2024, TPDC doubled its stake in the Mnazi Bay Block from 20% to 40%, paying Maurel & Prom USD 23.6 million under a new Joint Operating Agreement. This agreement also gives the state company decision-making power and long-term staff secondments.
Tanzania's natural gas reserves currently stand at 57.54 trillion cubic feet, with 10.41 trillion cubic feet onshore and 47.13 trillion cubic feet in deep offshore fields. The recent discovery at Mnazi Bay contributes to the country's efforts to increase its natural gas production and utilization. Production from the Kasa well is expected to begin in November 2026.
Key points
- The discovery of 223 billion cubic feet of natural gas at Mnazi Bay marks the first new find since 2015.
- Production from the Kasa well is expected to begin in November 2026, with an estimated output of 30 million cubic feet per day.
- Tanzania's natural gas reserves stand at 57.54 trillion cubic feet, with efforts underway to increase production and utilization.
