The Tanzania Petroleum Development Corporation (TPDC) received four oil exploration licenses from the Tanzanian government. These licenses were granted one day after the announcement of the gas discovery in the Mnazi Bay field in the Mtwara region. The ceremony took place on October 28, attended by the Vice President, Deogratius Ndejembi.
Details of the Gas Discovery in Mnazi Bay
The gas was discovered in the Kasa-1X ST2 exploratory well, drilled by the operator Maurel & Prom in collaboration with TPDC. The Tanzanian government estimates that the volume of discovered gas reaches 223 billion cubic feet (Bcf), while Maurel & Prom has initially estimated it at around 200 billion cubic feet. The Minister of Energy, Juma Zuberi Homera, announced that this well is expected to produce about 30 million cubic feet of gas (MMcfd) daily, and this capacity is expected to last for at least 10 years.
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Status of Gas Production and Infrastructure
According to information provided by Maurel & Prom, production from the Mnazi Bay field reached about 130 million cubic feet per day (MMcfd) in October. In this project, Maurel & Prom holds a 60% stake and TPDC holds a 40% stake, which is an increase from TPDC's 20% stake in 2024. Minister Homera also noted that over 80% of the gas produced from the Mnazi Bay field is allocated for electricity generation at the Tanzania Electric Supply Company plants in Mtwara and Dar es Salaam.
Additionally, the Tanzanian government is constructing a 35-kilometer (22-mile) pipeline from the Ntorya gas field to the Madimba processing facilities, with reports indicating that this project is 74% complete.
The total discovered gas resources in Tanzania are estimated to be around 57.5 trillion cubic feet (Tcf), which includes 47.1 Tcf offshore and 10.4 Tcf onshore. TPDC is also negotiating with four potential investors regarding small-scale LNG projects, three of which are located in the Mtwara region.
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