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Energy Minister Juma Homera announced the discovery of an estimated 223 billion cubic feet of natural gas at the Kasa-1X ST2 exploration well in the southern Mnazi Bay area, a joint effort between the state-owned Tanzania Petroleum Development Corporation and France’s Maurel & Prom. The minister stated that the Kasa well is projected to yield about 30 million cubic feet per day for at least the next 10 years. Two additional wells drilled in the same campaign, MB-5 and MS-2, have already lifted Mnazi Bay output by more than 65 million cubic feet daily to a current total of around 130 million cubic feet per day, according to Maurel & Prom data. Homera noted that more than 80 percent of the block’s production supplies TANESCO power plants in Mtwara and Dar es Salaam.
Prior to this announcement, Tanzania’s discovered natural gas reserves stood at approximately 57.5 trillion standard cubic feet, according to the country’s energy regulator. The minister described the find as important for providing reliable, clean and safe energy at affordable costs at a time of rising demand from industrial growth and other economic activities. TPDC has entered discussions with four investors interested in developing small-scale liquefied natural gas projects, Homera added in his statement.
Maurel & Prom, which operates the Mnazi Bay licence with a 60 percent stake, estimated the discovery at roughly 200 billion cubic feet gross in its October 22 operational update. The French company indicated that first production from the new well could commence as early as November 2026 with potential output reaching 50 million cubic feet per day. Reuters reported that the announcement marks Tanzania’s first gas discovery in more than a decade since the last major find in 2015.
The development coincides with Tanzania’s push to expand domestic gas utilisation while advancing a separate $42 billion liquefied natural gas export project in the Lindi region, Business Insider Africa reported. That larger initiative, led by Norway’s Equinor and Shell, targets more than 47 trillion cubic feet of offshore reserves and aims to position the country as a significant regional energy supplier if it proceeds. The Mnazi Bay discovery benefits from existing infrastructure that can accelerate supplies to local power generation and industry.
Analysts at Tuko.co.ke calculated that at Tanzania’s recent domestic selling price of $4.13 per MMBtu, the new reserves hold potential gross revenue of around $950 million, although actual returns will depend on recoverable volumes, production costs and future prices. TanzaniaInvest noted that the find provides immediate momentum for near-term supply increases in contrast to the longer timelines associated with offshore LNG developments. Officials have framed the news as part of broader efforts to strengthen energy security and attract further investment into the sector.
