Oil & Gas

The Tanzania Petroleum Development Corporation (TPDC) has entered into a strategic agreement with ESSA, an Indonesian company, to supply natural gas to a fertilizer plant currently under construction in the Mtwara region. This agreement marks a major step toward the use of natural gas in domestic industrial development. The move aligns with Tanzania’s broader goal of maximizing its natural gas resources to power economic transformation.

Valued at over USD 1.4 billion, the ESSA fertilizer plant is set to become one of the country’s most significant industrial investments. This major investment reflects a growing international partnership in Tanzania’s energy and agriculture sectors. The facility is expected to boost local industrial capacity and enhance the country’s ability to process and produce fertilizer independently.

Once operational, the plant will produce over one million tonnes of fertilizer annually. Sixty percent of this fertilizer will be sold within Tanzania, improving access for local farmers and boosting agricultural productivity. The remaining 40% will be exported to international markets, generating foreign revenue and strengthening Tanzania’s position in the regional trade arena.

Beyond production, the project is expected to create over 4,000 job opportunities, particularly for residents in the Mtwara region. The establishment of this plant is set to drive both economic and social development in southern Tanzania. With increased employment and industrial activity, the project is a key driver for inclusive growth and long-term sustainability.