Energy Policy & Regulation

Tanzania holds significant untapped hydrocarbon potential, with reserves estimated at more than 57.5 trillion cubic feet (Tcf) of natural gas, according to Fabian Mwose, Senior Petroleum Engineer at the Petroleum Upstream Regulatory Authority (PURA). Speaking during Africa Energy Week in Cape Town, Mwose highlighted the need to increase investor awareness of the country's petroleum resources. Tanzania currently produces approximately 230 million standard cubic feet of natural gas, supporting domestic demand and supplying more than 50 local industries.

Offshore areas account for approximately 47.13 Tcf of discovered gas reserves, representing a substantial share of Tanzania's natural gas potential. According to Mwose, future offshore discoveries are expected to be commercialised through liquefied natural gas (LNG) projects, with much of the output intended for export. Domestically, natural gas has helped reduce production costs for industries and supported local manufacturing, particularly in sectors such as plastics. However, the development of major gas projects requires substantial investment, processing infrastructure and long-term commercial agreements.

Although Tanzania has yet to establish commercial crude oil discoveries, potential exploration opportunities remain in several geological formations. Mwose identified the Eyasi-Wembere Basin as a promising area for further exploration, drawing comparisons with hydrocarbon-bearing regions in Uganda and Kenya. Meanwhile, the government is undertaking pre-exploration activities in Lake Tanganyika, including the demarcation of oil and gas blocks ahead of the country's planned fifth licensing round. These efforts aim to attract investors and establish whether commercially viable petroleum resources can be developed.

Tanzania's wider energy ambitions also include strengthening its petroleum infrastructure and industrial capacity. Government plans for a refinery in Tanga could complement the city's strategic position along regional energy transport routes, including the East African Crude Oil Pipeline, which is designed to transport Ugandan crude oil to international markets. If further exploration confirms commercially viable resources, Tanzania could expand its role in the regional petroleum industry. Realising this potential will depend on sustained investment, successful exploration, infrastructure development and the commercial viability of future projects.