Tanzania has discovered an estimated 223 billion cubic feet of natural gas in the Mnazi Bay Block in the southern Mtwara Region, marking its first reported new gas discovery in more than a decade. Energy Minister Juma Zuberi Homera announced the find on October 27, 2026, saying it could strengthen domestic energy supplies, support industrial growth and create investment opportunities.
The gas was identified at the Kasa-1X ST2 exploration well, drilled by the state-owned Tanzania Petroleum Development Corporation (TPDC) in partnership with French energy company Maurel & Prom. The discovery follows a drilling campaign involving three wells, including MB-5 and MS-2, designed to increase production from the existing gas-producing block.
Homera said the newly discovered well is expected to produce approximately 30 million cubic feet of gas daily for at least 10 years. Maurel & Prom has separately estimated the discovery at about 200 billion cubic feet gross and said production could begin as early as November 2026, with potential output of up to 50 million cubic feet per day. The difference between the estimates reflects figures reported by the government and the operator.
The announcement comes as Tanzania seeks to meet growing demand for electricity and industrial energy. Natural gas plays a significant role in the country's energy mix, supplying power plants and supporting industrial and commercial users. More than 80% of the gas produced at Mnazi Bay is used to generate electricity at Tanzania Electric Supply Company (TANESCO) facilities in Mtwara and Dar es Salaam.
The two development wells drilled alongside the exploration well have already increased production by more than 65 million cubic feet per day, according to the energy minister. Maurel & Prom reported that output from the Mnazi Bay operations had reached approximately 130 million cubic feet daily following the wells' commissioning.
The new discovery could also support the government's efforts to expand the use of natural gas beyond electricity generation. TPDC is in discussions with four investors interested in developing small-scale liquefied natural gas projects, three of which are planned for Mtwara. Such projects could create employment, supply industrial customers and support the use of natural gas in transport as an alternative to petrol and diesel.
Tanzania's discovered natural gas resources stood at approximately 57.5 trillion cubic feet before the latest announcement, according to the country's energy authorities. The Mnazi Bay discovery is a relatively small addition to that national resource base, but its location near existing production facilities and pipeline infrastructure could make it easier to bring additional supplies to market than a remote offshore discovery.
TPDC increased its stake in the Mnazi Bay Block from 20% to 40% in 2024, strengthening the state company's participation in the project. Maurel & Prom holds a 60% interest in the licence and operates the field. The partnership is expected to remain central to developing the new resource and integrating production into Tanzania's domestic gas network.
The discovery also comes as Tanzania pursues a much larger offshore liquefied natural gas export project, which has faced delays over commercial and regulatory negotiations. While the Mnazi Bay find is not large enough to underpin such an export development on its own, additional domestic production could help support electricity generation and industrial activity while the government continues efforts to attract investment into the wider gas sector.
The next steps will include bringing the new well into production, confirming the recoverable volumes and determining how the additional gas will be allocated. The project's economic impact will depend on actual output, operating costs, market demand and the ability to use existing infrastructure efficiently.
