Developments Driving Tanzania’s Natural Gas Market Expansion in 2025

Tanzania is maximizing efforts to exploit its estimated 57 trillion cubic feet of natural gas reserves to increase consumer access to clean cooking solutions and reliable and affordable electricity. The country aims to provide 80% of its population with access to clean cooking solutions by 2034 and to achieve 100% electricity access in all villages by June 2028. Several natural gas market milestones have been achieved in 2025, progressing the country towards its energy access goals.

Tanga LPG Terminal Construction

In June 2025, global integrated LPG firm Petredec kickstarted construction at the Tanga LPG terminal in partnership with Tanzanian energy firm ASAS Group of Companies. The terminal will have an LPG storage capacity of 40,000 cubic meters and is expected to be operational by 2027. The project aligns with the country’s goal of increasing per capita LPG consumption from 2.6 kg/year in 2022 to 10 kg/year by 2033. The project will facilitate imports of LPG from global markets as well as enable Tanzania to supply the African market once its natural gas production commences.

Tanzania LNG Project

In May 2025, Doto Mashaka Biteko, Deputy Minister of Energy, Tanzania announced that the country is advancing negotiations with international majors Shell, Equinor and ExxonMobil for the $42 billion Tanzania LNG facility. The country targets to finalize the agreement by October 2025. The project is expected to produce 10 million tons of LNG per annum, once operational by 2030 to meet local, regional and international demand. Up to 3% of gas from the project will supply the local market, contributing to Tanzania’s electricity and clean cooking access targets.

2025 Licensing Round

In March 2025, the Petroleum Upstream Regulatory Authority announced plans to launch a new licensing round this year as part of efforts to unlock the country’s hydrocarbon potential. The licensing round is expected to include 23 offshore blocks in the Indian Ocean and three in Lake Tanganyika. The bidding process is expected to close in December 2025.

ARA Petroleum Advances Ntorya Gas Project

Oman-based energy company ARA Petroleum launched a revised Field Development Plan for the Ntorya Gas Project in March 2025. The plan includes drilling 13 new wells and aims to scale production to 280 million standard cubic feet per day over five years. The project, supported by a 25-year development license and gas-sharing agreement secured in 2024, will enhance domestic supply and contribute to national energy security.