Tanzania has inked a memorandum of agreement (MoU) to potentially develop and assess the country’s largest gas reserve, Mnazi bay gas field. The agreement was signed between Tanzania’s Petroleum Development Corporation (TDPC) representing Nigeria. On the other hand, Nigeria was represented by FIRST Exploration & Petroleum Development Company (FIRST E&P). Signed in Dodoma, the MoU marks a strategic step towards unlocking Tanzania’s natural gas potential Furthermore, it holds the promise of expanding energy access across the region. Under the agreement, FIRST E&P will fully fund the technical assessment phase.
This signals confidence in the block’s potential and the company’s long-term interest in Tanzania’s upstream sector. TPDC Managing Director, Mussa Makame, noted that the MoU allows both parties to review existing data. Furthermore, it allows them to conduct new studies and explore potential gas development and production opportunities. “The MoU is valid for nine months but could conclude earlier or be extended depending on the findings. The full cost implications will become clearer after the assessment phase,” he said. Mr Makame emphasized the significance of developing domestic gas resources. Tanzania is making significant advancements in its energy project other than Mnazi Bay gas field as its gas-to-liquid plant takes shape.
The plant is expected to be one of the nation’s most transformative industrial projects that will produce various products. These include diesel, jet fuel, naptha, hydrogen, and fertilizer. Moreover, it is expected to rival Nigeria-based Dangote refinery owned by Africa’s richest man, Aiko Dangote. The project advanced to a major milestone after completion of a feasibility study confirming the project’s economic and technical viability. The study was conducted by Canadian-based clean-fuel technology company, Rocky Mountain GTL. The planned $420 million investment could position Tanzania as Africa’s first exporter of synthetic jet fuel and diesel. Moreover, it would effectively capitalize on its 57.54 trillion cubic feet of natural gas. Representatives of Rocky Mountain GTL noted detailed commercial collaboration is already underway.
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The Significance of Tanzania’s MoU on Mnazi Bay Gas Field
The agreement on Mnazi Bay gas field highlights Tanzania’s commitment to push through and ensure energy diversification. Makame noted the impact of the project on energy access, environmental protection and public health access across Africa. Moreover, he commended African-owned companies like FIRST E&P for driving transformation from within the continent. He praised them for promoting local value chains and sharing technical expertise. FIRST E&P Managing Director Ademola Adeyem-Bero noted his pleasure to be part of the project.
Bero noted that the company’s move into Tanzania aligns with its long-term strategy of expanding operations across Africa. “Tanzania presents an opportunity not just for exploration but as a gateway to regional energy trade. With the right policy and investment environment, the country can become a key energy hub for Sub-Saharan Africa. Moreover, he noted that the company’s strategy is built on technical excellence. High-performance team and entrepreneurial drive are also part of the driving force. The Mnazi bay gas field holds promise as a strategic national asset and improving Tanzania’s gas sector.
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