Tanzania has announced a major natural gas discovery estimated at 223 billion cubic feet in the Mnazi Bay area of southern Tanzania.
Energy Minister Juma Zuberi Homera announced the discovery on October 28, 2026. The gas was identified at the Kasa-1X ST2 well in Mtwara Region through a partnership between the state-owned Tanzania Petroleum Development Corporation (TPDC) and French energy company Maurel & Prom.
The discovery marks Tanzania’s first reported new natural gas find in more than a decade. It could strengthen domestic energy supplies as demand for electricity and industrial fuel continues to grow.
What the Mnazi Bay Discovery Means
The Kasa-1X ST2 well forms part of a three-well drilling programme that also included MB-5 and MS-2. According to Homera, the newly identified gas could support electricity generation, industrial development and government revenue. The discovery could also attract further investment into Tanzania’s oil and gas sector.
However, the government’s estimate requires an important distinction. Maurel & Prom reported a preliminary estimate of approximately 200 billion cubic feet of gas on a gross basis, compared with the government’s 223 billion cubic feet figure.
The company’s estimate represents approximately 120 billion cubic feet attributable to its 60 per cent interest in the licence. The figures should not automatically be treated as independently certified, commercially recoverable reserves.
When Could Gas Production Begin?
Maurel & Prom has indicated that production from the Kasa discovery could begin as early as November 2026.
The company has cited potential output of up to 50 million cubic feet per day. Meanwhile, Tanzanian officials have reported expected production of approximately 30 million cubic feet daily for at least 10 years.
These figures represent different estimates and should not be interpreted as confirmed production levels. Actual output will depend on development work, processing capacity and operational performance.
The other two wells, MB-5 and MS-2, have already increased production in the Mnazi Bay block by more than 65 million cubic feet per day, according to the government.
Natural Gas Supports Tanzania’s Electricity Supply
Mnazi Bay is an important source of gas for Tanzania’s domestic energy market. More than 80 per cent of the gas produced in the block supplies Tanzania Electric Supply Company (TANESCO) power plants in Mtwara and Dar es Salaam.
The additional supply could help support electricity generation and reduce reliance on imported energy. The government also expects the discovery to contribute to public revenue through production-sharing arrangements, TPDC’s participation in the project and taxes.
Nevertheless, the discovery alone does not guarantee lower electricity prices. Any effect on energy costs will depend on production expenses, infrastructure, supply agreements and wider market conditions.
Tanzania Pursues More Gas Investment
Homera also said TPDC was in discussions with four investors interested in developing small-scale liquefied natural gas projects.
Three of the proposed projects are expected to be located in Mtwara. The plans could expand the use of natural gas and create opportunities in transport, industry and employment.
The government increased TPDC’s stake in the Mnazi Bay block from 20 per cent to 40 per cent in 2024, strengthening its participation in the project.
The latest discovery adds momentum to Tanzania’s efforts to develop domestic gas resources. Its long-term economic value, however, will depend on successful development, sustained production and how effectively the country uses the additional supply.
