Tanzania Discovers 223 Billion Cubic Feet of Natural Gas in Mtwara

Tanzania has announced a new natural gas discovery estimated at 223 billion cubic feet in the Mnazi Bay Block in the Mtwara Region, in a development expected to strengthen the country’s domestic energy supply.

Energy Minister Juma Zuberi Homera announced the discovery on Tuesday, following drilling of the Kasa-1X ST2 exploration well by the Tanzania Petroleum Development Corporation in partnership with Maurel & Prom.

The discovery is the country’s first reported new natural gas find since 2015.

According to the minister, the well is projected to produce approximately 30 million cubic feet of gas daily for at least 10 years. Two other wells in the Mnazi Bay Block have also increased production by more than 65 million cubic feet per day.

More than 80 per cent of gas produced in the block is used to generate electricity at Tanzania Electric Supply Company power plants in Mtwara and Dar es Salaam.

The government expects the discovery to improve energy security, support industrial growth and potentially increase public revenue through production-sharing arrangements, taxes and the participation of the national petroleum corporation.

Natural gas may also support petrochemical production, including fertiliser and plastics manufacturing.

The expected economic benefits will depend on the development of the field, production performance, infrastructure and the extent to which additional supply reaches industries and consumers.

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