TPDC AND ENERGETECH-TANTEL SIGN MOU FOR CONSTRUCTION OF MINI LNG PLANTS TO EXPAND ACCESS TO NATURAL GAS IN TANZANIA AND BEYOND

The Tanzania Petroleum Development Corporation (TPDC) and Energetech-Tantel have signed a Memorandum of Understanding (MoU) that will pave the way for the construction of small-scale liquefied natural gas (Mini LNG) plants aimed at improving access to natural gas in various parts of the country and beyond Tanzania's borders. This significant event took place in Dar es Salaam, and was witnessed by the Commissioner for Petroleum and Gas in the Ministry of Energy, Mr. Goodluck Shirima, who represented the Deputy Prime Minister and Minister for Energy, Hon. Dr. Doto Biteko. The signing of this agreement aligns with directives from the President of the United Republic of Tanzania, H.E. Dr. Samia Suluhu Hassan, to position Tanzania as a key regional energy hub for the Southern African Development Community (SADC) and the East African Community (EAC). The MoU outlines a comprehensive two-year work plan, which includes feasibility studies, acquisition of key permits, detailed engineering, project financing, and ultimately, the production of liquefied natural gas (LNG), with the first LNG output expected within the next 12 months. This innovative project aims to leverage Tanzania's natural gas resources to ensure reliable, affordable, and environmentally friendly energy access for various users, including industries, transport, households, electricity generation, and institutions. The project, estimated to cost between USD 80–100 million in its first phase, will involve the construction of a modern Mini LNG plant that will convert natural gas into liquid form to be transported in special containers to markets both within and outside Tanzania. Initial production is estimated at between 20 and 30 million cubic feet per day, with potential expansion capacity to exceed 100 million cubic feet per day. Under the terms of the agreement, Energetech-Tantel will lead in financing, engineering, and distribution of the project’s final products, focusing on delivering energy where it is most needed. TPDC will provide critical support in transporting natural gas for processing and serve as a key liaison with government authorities, including facilitating necessary permits. Speaking to journalists, Commissioner for Petroleum and Gas, Mr. Goodluck Shirima, said, “Private sector investment is crucial for delivering practical solutions to industrial development in Tanzania, with a priority on enhancing domestic use of natural gas. Once operational, Tanzanian households and industries will benefit from clean gas energy, thereby reducing energy costs.” TPDC Managing Director, Mr. Mussa Makame, stated: “TPDC fully supports public-private partnerships that deliver solutions for Tanzanians.” He added that the agreement aims to utilize resources to provide clean energy while ensuring benefits for both citizens and neighboring countries. “We are proud to partner with Energetech-Tantel in gas production, which is vital to our strategy.” Energetech-Tantel CEO, Mr. Alistair Naiken, emphasized that the agreement represents more than a partnership it is a shared commitment to transforming Tanzania’s energy sector. “We are building real energy solutions that will transform communities, delivering gas where and when it’s needed most, with the primary goal of ensuring Tanzanians benefit first particularly industrial customers through access to clean energy.” Tantel Holdings President, Mr. Daniel Gabai, added: “Tanzania is one of the most promising countries in East Africa. At Tantel Holdings, we’re investing not just in potential but in people, embracing the major infrastructure challenges. We believe Tanzania will be a leading force for growth in Africa over the next decade, and this project will be the continent’s flagship clean energy initiative serving both domestic and regional markets.”