Tanzania unveils major Mnazi Bay gas find

Gas flare stack at an East African field, illustrating new Mnazi Bay gas discovery and LNG plans

Key Points

01Tanzania discovers 223 billion cubic feet of gas at Mnazi Bay
02New Kasa-1X ST2 well marks first gas find in over a decade
03Maurel & Prom targets first production as early as Nov 2026
04Government in talks with four investors for small LNG projects

New Mnazi Bay gas discovery breaks decade-long lull

Tanzania has announced a major natural gas discovery estimated at 223 billion cubic feet in the Mnazi Bay area in the south of the country, its first new gas discovery in more than 10 years. Homera said the discovery is important for ensuring reliable, clean and safe energy at a time of rising demand driven by industrial and economic activity.

Homera explained that TPDC and Maurel & Prom drilled three wells – MB-5, MS-2 and Kasa-1X ST2 – to increase gas supplies from the Mnazi Bay basin. The other two wells have already added more than 65 million cubic feet per day of production.

Timeline and scale of planned gas production

Maurel & Prom has said first production is envisaged as early as November 2026, with potential output of 50 million cubic feet per day.

Before this discovery, Tanzania’s identified natural gas resources stood at approximately 57.5 trillion standard cubic feet, according to the country’s energy regulator. The additional volumes from Mnazi Bay are expected to support national efforts to meet growing domestic energy demand and underpin industrialisation plans. Tanzania currently uses more than 80% of gas produced from Mnazi Bay to generate electricity, mainly supplying power plants in Mtwara and Dar es Salaam, making incremental output from the new well significant for power supply.

Government strategy and LNG investment talks

The gas discovery aligns with Tanzania’s strategy to strengthen energy security, attract foreign investment and expand the use of natural gas in electricity generation and industrial production. Homera said the project would help reduce energy costs, increase employment opportunities and stimulate industrial growth across the country. Economic activities linked to the development are also expected to generate additional revenue for local government authorities in the Mtwara Region, supporting regional development.

The government is already in negotiations with four investors planning small-scale liquefied natural gas (LNG) projects, including three proposed developments in Mtwara. These projects are expected to expand the use of natural gas and enable its use in vehicles as an alternative to petrol and diesel. While Tanzania is also pursuing a multibillion-dollar LNG export project to commercialise offshore gas resources, negotiations and final investment decisions on that initiative have faced delays. In contrast, the Mnazi Bay discovery can be tied into existing infrastructure, offering the potential for quicker delivery of additional gas to the domestic market.

Key Takeaways

01The 223 billion cubic feet Mnazi Bay discovery ends a long pause in Tanzania’s gas exploration success and immediately increases the country’s future supply outlook.
02Planned production of up to 50 million cubic feet per day, alongside existing Mnazi Bay output, positions the basin as a core driver of Tanzania’s gas-fired power generation.
03Talks with four small-scale LNG investors show the government using the new resource to broaden gas applications, including transport fuel and industrial use.
04The projected gross revenue of about US$950 million underlines the fiscal significance of the find, although final value will hinge on recoverable volumes and price trends.
05By leveraging existing infrastructure, the Mnazi Bay project can bring additional gas to market relatively quickly, complementing longer-dated offshore LNG ambitions.

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