Tanzania’s Natural Gas Sector Receives Global Support Through Dubai Partnership
Tanzania has formed a collaborative natural gas venture with Dubai, named Energetech-Tantel. This partnership emerges as the demand for natural gas in the East African Community (EAC) continues to grow. In the region, small-scale energy producers are increasingly meeting the rising demand for this resource.
Natural gas is a key focus for Tanzania as it aims to diversify its energy portfolio and pursue greener alternatives. The recent collaboration between Tanzania’s Tantel and Dubai’s Energetech aims to capitalize on the country’s energy resources through the establishment of the Energetech-Tantel joint venture.
This initiative, conceived by the Tanzania Petroleum Development Corporation (TPDC), is intended to facilitate the nationwide distribution of natural gas using road and rail networks.
As stated in a TPDC press release, the signed Memorandum of Understanding (MoU) will enable an investment ranging from $80 million to $200 million to supply gas to four regions: Dodoma, Geita, Mwanza, and Kigoma.
During his address after the MoU signing, Mr. Goodluck Shirima, the Ministry of Energy’s Commissioner for Petroleum and Gas, announced that the initial delivery of natural gas is expected within the next twelve months. He noted that the project aims to provide gas to Dodoma, the capital, and other central regions with high gas demand.
Currently, only four regions—Lindi, Mtwara, Coast, and Dar es Salaam—have access to natural gas, but the government aims to extend this access nationwide.
“The government is dedicated to fostering a gas-based economy, leveraging the country’s abundant natural gas reserves, and various initiatives are in progress to develop this resource,” he remarked.
The project is projected to involve an investment exceeding $100 million and is set to commence operations in 2026, significantly advancing Tanzania’s clean energy infrastructure goals.
Initially, the facility will process between 20 and 30 million standard cubic feet per day (mmscf/day) of natural gas. Its modular technology allows for quick scalability, with the potential to expand to 120 mmscf/day as regional energy needs grow.
Commissioner Shirima explained that the liquefied natural gas (LNG) produced will be transported using a containerized road system, referred to as a ‘virtual pipeline,’ ensuring prompt and reliable energy delivery to industrial and commercial clients.
“This approach surpasses the existing pipeline infrastructure, which currently relies on costly and polluting diesel generators,” he clarified.
Mussa Makame, CEO of TPDC, remarked that this collaboration with Energetech-Tantel represents a significant advancement in enhancing Tanzania’s energy infrastructure and fostering economic growth.
The development of this modular LNG facility is expected to lower energy costs, boost industrial competitiveness, and create new investment and job opportunities domestically.
“Additionally, by positioning Tanzania as a key exporter of clean energy to East and Central Africa, this project will enhance our nation’s regional influence and contribute to broader sustainability and economic integration goals,” he added.
Alistair Naiken, CEO of Energetech Tantel, highlighted the project’s strategic importance, particularly as the country transitions to cleaner energy sources.
“Our partnership with TPDC is a vital step toward transforming the regional energy landscape,” he stated.
He further emphasized that by swiftly implementing modular LNG infrastructure, they are committed to significantly lowering energy costs and carbon emissions, promoting economic growth, and enhancing energy security throughout the region.
“This facility represents a foundational investment in sustainable development and regional integration,” he concluded.
Echoing these sentiments, Moshe Schlisser, Chairman of Energetech Tantel, noted that this partnership presents a unique opportunity to invest in impactful infrastructure within one of Africa’s most promising markets.
“With strong local collaboration and government support, we aim to empower industries that lack consistent, affordable power and establish Tanzania as a regional hub for LNG storage and distribution, enhancing energy access and long-term sustainability across East and Central Africa,” he elaborated.
He also mentioned, “We have already contributed to several major initiatives across Tanzania, and we view this as an opportunity to deliver something truly transformative, setting a new standard for innovation, resilience, and lasting value.”
In summary, Daniel Gabai, Managing Director at Energetech-Tantel, stated, “What distinguishes this initiative is its capacity to provide reliable, cleaner energy to industries currently underserved by traditional infrastructure.”
He explained that the modular design and virtual pipeline distribution model facilitate rapid deployment, flexibility, and measurable impacts on emissions and operational costs for industries throughout Tanzania and beyond.
“Our objective is to create a scalable, future-proof energy solution that will establish the foundation for a low-carbon energy ecosystem across East Africa,” he concluded.
Natural Gas: Addressing the Growing Demand in the EAC
Regional market forecasts indicate a rapidly increasing energy demand across the EAC, driven by industrial growth, mining activities, and infrastructure development, according to the International Energy Agency (IEA).
The IEA projects that natural gas consumption in sub-Saharan Africa will nearly double by 2040, primarily fueled by the power sector and industrial expansion.
Investments in small-scale LNG infrastructure, such as Energetech-Tantel, directly address this demand, supporting economic growth while significantly reducing regional carbon footprints.
The press report further explains that East Africa has historically encountered significant challenges due to inadequate energy infrastructure, forcing industries to rely on imported fuels and diesel generation.
“This dependency inflates energy costs, hinders economic growth, and raises carbon emissions,” the report states.
As previously mentioned, small-scale LNG projects like Energetech-Tantel’s facility are increasingly recognized globally as effective solutions to bridge infrastructure gaps and enable the rapid deployment of clean, affordable energy.
In addition to providing power for industrial generation, Energetech-Tantel is actively investigating future market opportunities, including LNG bunkering for marine vessels and LNG fuel-switching for heavy transportation fleets. These sectors offer substantial environmental and economic advantages, aligning closely with global decarbonization initiatives.
“Energetech-Tantel aims to position Tanzania as a central hub for LNG storage and distribution in East and Central Africa, significantly improving energy affordability, security, and environmental sustainability throughout the region,” the report concludes.
