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Tanzania announces first natural gas discovery in a decade

Tanzania announces first natural gas discovery in a decade

New Capabilities

223 billion cubic feet found at Mnazi Bay, production slated within weeks

Yesterday: TPDC awarded four exploration blocks

Overview

Updated 2 hours ago

Tanzania announced its first natural gas discovery in a decade on October 27: an estimated 223 billion cubic feet at the Kasa-1X ST2 well in the Mnazi Bay area. Gas already generates nearly 80% of the country's electricity, and production from the new field could start within weeks.

The find landed amid a rougher transition. The operator of the country's other gas pillar, Songo Songo, rejected extension terms and plans to stop running the field by late November. The state oil company, TPDC, is taking a larger operating role across the sector, including four new exploration blocks.

Why it matters

Gas generates nearly 80% of Tanzania's electricity, so this find cushions the grid just as the country's other major field faces a contested operator exit.

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Key Indicators

223 billion cubic feet
Estimated gas at Kasa-1X ST2 well
First discovery in a decade; whether the volume is recoverable is not yet confirmed.
~80%
Electricity generated from natural gas (2024)
Government statistics show gas dominates the power mix.
57.54 trillion cubic feet
Official Tanzanian gas reserves
Kasa equals roughly 0.4% of this total.
$23.6 million
TPDC payment to raise Mnazi Bay stake to 40%
The state company lifted its interest from 20%.
4
New exploration blocks awarded to TPDC
Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara.

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People Involved

JH
Juma Homera
Minister of Energy, Tanzania
Announced the Kasa discovery as a major milestone
MM
Mussa Makame
Managing Director, Tanzania Petroleum Development Corporation
Received four exploration licences for TPDC
JM
James Mataragio
Permanent Secretary for Oil and Gas, Ministry of Energy
Explained the government's rationale for licensing TPDC
DN
Deogratius Ndejembi
Vice-President of Tanzania
Guest of honour at TPDC licence ceremony

Organizations Involved

TP
Tanzania Petroleum Development Corporation
State-owned oil and gas company
Raising its role from partner to operator

Tanzania's state petroleum corporation, majority partner at Kasa and newly licensed on four exploration blocks.
Maurel & Prom
Maurel & Prom
French oil and gas company
Operator of the Mnazi Bay licence with 60% stake

French oil firm holding 60% of the Mnazi Bay licence and operating the producing field.
OE
Orca Energy / PanAfrican Energy Tanzania
Oil and gas producer
Plans to stop operating Songo Songo by November 29

Operator of the Songo Songo field since 2004; rejected new licence terms and plans to exit.
TG
Taifa Gas / Amber Energy Investment
Gas distributors
Sale of Orca's Tanzania business blocked, under appeal

Tanzania's largest private gas supplier, which agreed to buy Orca's local business for a nominal $10.

Timeline

1974 October 2026

11 events Latest: Yesterday Showing 8 of 11
Tap a bar to jump to that date

  1. TPDC awarded four exploration blocks

    Latest Regulatory

    The state company receives licences for Mnazi Bay North, West Songo Songo, Eyasi-Wembere and Lindi-Mtwara.

  2. Kasa discovery announced

    Discovery

    Energy Minister Juma Homera announces 223 billion cubic feet at the Kasa-1X ST2 well, the first find in a decade.

  3. Buyers appeal against block on Orca sale

    Legal

    Taifa Gas and Amber Energy appeal against the block on their purchase of Orca's Tanzania business.

  4. Songo Songo development licence expires

    Regulatory

    The 25-year licence granted in 2001 lapses, with its extension still unresolved.

  5. Extension notice issued for Songo Songo licence

    Regulatory

    Minister issues notice of intent to extend the TPDC and PAET licence; operator rejects terms as uneconomic.

  6. Orca agrees to sell Tanzania business

    Deal

    Orca agrees to sell its Tanzanian gas business to Taifa Gas and Amber Energy for a nominal $10.

  7. Orca files arbitration claims

    Legal

    Orca files three claims against the government and TPDC over the Songo Songo gas-to-electricity project.

  8. Largest single Tanzanian discovery announced

    Discovery

    A find of 2.7 trillion cubic feet fuels expectations for domestic supply and LNG exports.

  9. Commercial gas production begins

    Milestone

    Songo Songo and Mnazi Bay enter production, three decades after the first discovery.

  10. Second discovery at Mnazi Bay

    Discovery

    Natural gas found at Mnazi Bay in the neighbouring Mtwara region.

  11. First Tanzanian gas discovery at Songo Songo Island

    Discovery

    Tanzania finds natural gas at Songo Songo Island in the southeast Lindi region.

Scenarios

1

Kasa field starts production as promised

Likely Resolves by End of 2026

Discussed by: Energy Minister Juma Homera said production could begin early next month; TPDC and Maurel & Prom have not confirmed a date.

The two development wells at Mnazi Bay, MB-5 and MS-2, tested at 47 and 50 million cubic feet per day, lifting field potential toward 200 million against about 125 million in mid-2026. If Kasa-1X ST2 comes online as promised, the added supply cushions a power system that leans heavily on gas.

2

Songo Songo handover cuts gas supply

Possible Resolves by Dec 29, 2026

Discussed by: Orca said the field supplies about 54% of daily output; DoingBusiness called the transition the sternest test of the week.

PanAfrican Energy Tanzania plans to stop operating Songo Songo on November 29 after rejecting extension terms it called uneconomic. The wells and the processing plant transfer to TPDC control. A poor handover could cut gas to power plants, shake confidence in TPDC, and raise the cost of capital for the next licensing round.

3

Independent assessment revises the Kasa volume

Uncertain Resolves by Q2 2027

Discussed by: DoingBusiness noted the announcement did not clarify whether 223 billion cubic feet is gas in place or recoverable.

The 223 billion cubic feet figure has not been independently verified, and the distinction between in-place and recoverable gas matters. Recoverable reserves at Mnazi Bay were previously put at 641 billion cubic feet, so Kasa could add about a third to that base. A formal reserves assessment from Maurel & Prom or TPDC will settle the question.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1974–2004

Tanzania's original gas finds reach production (1974–2004)

Tanzania found gas at Songo Songo Island in 1974 and at Mnazi Bay in 1982. Commercial production did not start until 2004, after the government restructured the sector and brought in private operators.

Then

The 2004 start brought gas to power plants, cutting reliance on hydro and imported diesel.

Now

It built the domestic gas industry that now supplies nearly 80% of Tanzania's electricity.

Why this matters now

Shows how long Tanzanian gas took to commercialize historically; Kasa is being fast-tracked to production within weeks of discovery.

2012–present

Kenya's Lokichar oil finds stall (2012–present)

Tullow Oil announced commercial oil at Lokichar in 2012, with billions of barrels estimated. Production has repeatedly slipped, stalled by the cost of a pipeline to the coast and export facilities.

Then

A decade later the field remains largely undeveloped.

Now

It became the standard example of a discovery that does not deliver revenue without infrastructure.

Why this matters now

Kasa's value depends on the same question: whether existing pipelines and plants can carry the new gas to customers.

2016

Tanzania's largest single gas find (2016)

A discovery of 2.7 trillion cubic feet was announced, the largest single find in Tanzania's history, feeding expectations of both domestic supply and a major LNG export project.

Then

The find underpinned LNG export plans with Shell and Equinor, a $42 billion venture still un-finalized a decade later.

Now

It showed that even large finds move slowly when tied to big-ticket export infrastructure.

Why this matters now

Kasa is smaller but domestic-focused, so it can move faster than the LNG track - the story's central contrast of speed versus scale.

Sources

(7)
+1
Africanews BBC News DoingBusiness CNBC Africa / Reuters Business Insider Africa Semafor Lemmy.World