Tanzania Discovers 223 Bcf of Natural Gas at Mnazi Bay, Strengthening Energy Security and LNG Ambitions
Tanzania has announced the discovery of an estimated 223 billion cubic feet (bcf) of natural gas at the Mnazi Bay field in the Mtwara region, marking the country’s first significant gas discovery in more than a decade.
The discovery was made at the Kasa-1X ST2 exploration well and is expected to bolster Tanzania’s energy security while supporting industrial growth and economic development.
Energy Minister Juma Homera described the find as an important step toward ensuring a reliable, affordable and cleaner energy supply for the country.
The Mnazi Bay licence is operated through a joint venture between the Tanzania Petroleum Development Corporation (TPDC) and French energy company Maurel & Prom.
Maurel & Prom holds a 60% operating interest in the project, while TPDC owns the remaining 40%.
The newly discovered reserves form part of a wider three-well drilling campaign that also includes the MB-5 and MS-2 wells.
According to government officials, the additional gas resources will help meet increasing domestic energy demand as Tanzania continues to expand its industrial base and modernise its economy.
Natural gas remains a cornerstone of Tanzania’s energy mix, accounting for nearly 80% of the country’s electricity generation.
The latest discovery is expected to reinforce efforts to provide stable power supplies to households, businesses and industries while reducing reliance on more expensive energy sources.
Before the latest discovery, Tanzania’s proven natural gas reserves stood at approximately 57.54 trillion cubic feet.
The government has also been promoting the use of compressed natural gas (CNG) for transport and is engaging investors in the development of small-scale liquefied natural gas (LNG) projects to unlock further value from the country’s gas resources.
The discovery comes as Tanzania advances plans for a proposed US$42 billion LNG export project involving international energy majors Shell and Equinor.
At the same time, authorities are preparing a new licensing round that will offer 26 exploration blocks, including offshore acreage in the Indian Ocean and blocks located in Lake Tanganyika.
Industry analysts view the Mnazi Bay discovery as a positive signal for future exploration activity and investment in Tanzania’s upstream petroleum sector.
If development progresses according to schedule, production from the new reserves could commence as early as November 2026, further strengthening the country’s long-term energy outlook.
