Tanzania announces natural gas discovery at Mnazi Bay

Tanzania has announced a natural gas discovery estimated at 223 billion cubic feet at Mnazi Bay in the southeastern Mtwara Region. The discovery follows the drilling of the Kasa-1X ST2 exploration well by the Tanzania Petroleum Development Corporation (TPDC) and its partner, Maurel & Prom.

Energy Minister Juma Zuberi Homera stated that the well is expected to produce approximately 30 million cubic feet of gas per day for at least 10 years. This marks the country’s first new natural gas discovery since 2015. Additionally, two other wells in the block, MB-5 and MS-2, have increased production by more than 65 million cubic feet per day.

The discovery is intended to strengthen domestic energy security and support industrial growth. Currently, over 80 per cent of gas produced at Mnazi Bay is used by TANESCO power plants in Mtwara and Dar es Salaam. The government expects the find to reduce reliance on imported energy and generate revenue through taxes and production sharing agreements. TPDC recently increased its stake in the Mnazi Bay project from 20 per cent to 40 per cent in 2024.