Tanzania’s natural gas industry gets global boost with Dubai deal

• Tanzania and Dubai have established joint natural gas venture: Energetech-Tantel 
• The joint venture comes at a time when demand for natural gas in EAC is on the rise.
• Across the region. small-scale energy producers continue to bridge demand for the commodity.

Natural gas is among the energy sources that Tanzania has invested in as the country seeks to diversify it’s energy sources and go green. In the latest move, Tanzania’s Tantel has partnered with Dubai based Energetch to form a natural gas joint venture,  Energetech-Tantel, to harness the country’s energy wealth.

The joint venture is the brainchild of the Tanzania Petroleum Development Corporation (TPDC) designed to distribute natural gas nationwide via road and rail infrastructure.

According to a press release from TPDC; “The  signed the Memorandum of Understanding (MoU) will pave way for the investment of $80 to $200 million for the supply of gas across four regions namely Dodoma, Geita, Mwanza and Kigoma.”

In his speech following the MoU signing, the Ministry of Energy Commissioner for Petroleum and Gas, Mr. Goodluck Shirima, said the first delivery of the natural gas will be within the next twelve months. “The project will help supply gas to the country’s capital Dodoma, as well as key production areas in the central regions which have shown high gas demand,” he detailed.

He added that currently, only four regions have access to natural gas. These are Lindi, Mtwara, Coast and Dar es Salaam; “though the government’s goal is to ensure gas reaches all regions in the country.”

“The government is committed to building a gas-based economy, taking advantage of the abundant natural gas reserves that the country is endowed with…and various initiatives are underway to develop this resource,” he said.

According to the press communique, the project represents an investment upwards of $100 million, and will officially begin operations in 2026; “significantly advancing Tanzania’s clean-energy infrastructure ambitions.”

Initially, the facility will liquefy between 20 and 30 million standard cubic feet per day (mmscf/day) of natural gas. “Its modular technology enables rapid scalability, with potential expansion up to 120 mmscf/day as regional energy demand accelerates.”

Energy Commissioner Shirima detailed that the LNG produced will be distributed via a containerized road transportation system or what he described as a ‘virtual pipeline’ that will provide swift, reliable energy to industrial and commercial customers.

“This will go beyond the existing pipeline infrastructure, which currently rely on expensive and polluting diesel generators,” he explained.

In his comments, CEO of TPDC, Mussa Makame said;  “This partnership with Energetech-Tantel marks a significant milestone in enhancing Tanzania’s energy infrastructure and driving tangible economic growth.”

The development of this modular LNG facility will substantially lower energy costs, stimulate industrial competitiveness, and create new investment and employment opportunities domestically.

“Moreover, by positioning Tanzania as a key exporter of clean energy to East and Central Africa, the project will amplify our nation’s regional influence and contribute meaningfully to broader sustainability and economic integration objectives,” he said.

On his part, Alistair Naiken, CEO of Energetech Tantel, emphasized the project’s strategic significance especially at a time that the country is looking to transition to clean energy.

“Our collaboration with TPDC is a critical step toward reshaping the regional energy landscape,” he said.

Further, he said by rapidly deploying modular LNG infrastructure, we are committed to significantly reducing energy costs and carbon emissions, stimulating economic growth, and reinforcing energy security throughout the region.

“This facility represents a foundational investment in sustainable development and regional integration,” he added.

Seconding the views, Chairman at Energetech Tantel, Moshe Schlisser said; “This partnership offers a unique opportunity to invest in high-impact infrastructure in one of Africa’s most promising markets.”

“With strong local collaboration and government backing, we aim to empower industries lacking consistent, affordable power and establish Tanzania as a regional hub for LNG storage and distribution, driving energy access and long-term sustainability across East and Central Africa,” he detailed.

He also pointed out that; “We’ve already played a role in several major initiatives across Tanzania, and we see this as a chance to deliver something truly transformative, setting a new benchmark for innovation, resilience, and lasting value.”

Summing it all up, Daniel Gabai, the Managing Director at Energetech-Tantel said; “What sets this initiative apart is its ability to deliver reliable, cleaner energy to industries currently underserved by traditional infrastructure.”

He said the modular design and virtual pipeline distribution model allow for fast deployment, flexibility, and measurable impact on both emissions and operating costs for industries across Tanzania and beyond.

“Our goal is to build a scalable, future-proof energy solution that will lay the groundwork for a low-carbon energy ecosystem across East Africa,” he concluded.

Read also: Geothermal power: Tanzania’s renewed drive for green energy

Natural gas: Meeting the growing EAC demand

According to regional market forecasts, all indications show rapidly growing energy demand across the EAC. “This demand is driven by industrial expansion, mining activities, and infrastructure development,” says the International Energy Agency (IEA).

According to the IEA, sub-Saharan Africa’s natural gas consumption is expected to nearly double by 2040, driven largely by the power sector and industrial growth.

It is small-scale LNG infrastructure investments like Energetech-Tantel, that directly addresses this demand and serves to support economic expansion and at the same time, help to  significantly reduce regional carbon footprints.

Further still, the press report elaborates that East Africa has historically faced considerable challenges due to limited energy infrastructure, a fact that forces industries to depend on imported fuels and diesel generation.

“This reliance inflates energy costs, impedes economic growth, and increases carbon emissions,” the report says .

As pointed out earlier, it is small-scale LNG projects like Energetech-Tantel’s facility are increasingly recognized globally as efficient solutions to bridge infrastructure gaps and enable rapid deployment of clean, economical energy.

In addition to supplying industrial power generation, Energetech-Tantel is actively exploring future market opportunities such as LNG bunkering for marine vessels and LNG fuel-switching for heavy transportation fleets. These sectors promise substantial environmental and economic benefits, aligning closely with global decarbonization efforts.

“Energetech-Tantel intends to establish Tanzania as a central hub for LNG storage and distribution in East and Central Africa, significantly enhancing energy affordability, security, and environmental sustainability across the region,” the report concludes.