Tanzania has announced an estimated 223 billion cubic feet (Bcf) of natural gas at the Kasa-1X ST2 well in Mtwara’s Mnazi Bay Block, its first reported new gas discovery since 2015. The October 27 announcement comes as the country seeks more gas for power generation, factories and transport. However, the field operator has published a lower preliminary estimate, and neither figure should be treated as certified recoverable reserves.
Key Overview
- Energy Minister Juma Homera announced an estimated 223 Bcf discovery on October 27, 2026.
- Maurel & Prom, the field operator, separately estimated approximately 200 Bcf of gas associated with the find.
- State-owned TPDC owns 40% of Mnazi Bay, while Maurel & Prom holds the remaining 60%.
- Two other wells have raised current Mnazi Bay output to around 130 million cubic feet per day.
- First production from Kasa could begin as early as November 2026, subject to operational readiness.
Government and Operator Publish Different Gas Estimates
Tanzania’s official discovery announcement identified 223 Bcf at Kasa in the Mnazi Bay Block. The well was drilled by the Tanzania Petroleum Development Corporation (TPDC) and French energy company Maurel & Prom, which operates the block.
There is an important qualification to that headline number. In its October 22 operational update, Maurel & Prom estimated around 200 Bcf gross, including approximately 120 Bcf attributable to its 60% working interest. The operator described the find as promising but did not publicly identify that estimate as proved reserves or another certified recoverable-resource category.
The difference between the government and operator estimates has not been reconciled publicly. Further technical evaluation will help determine how much gas can be produced economically and over what period.
New Wells Could Expand Tanzania’s Domestic Gas Supply
Kasa was drilled from an onshore site to a target roughly 4.5 kilometres offshore. A sidetrack intersected 588 metres of reservoir, according to the drilling and testing details.
The wider drilling campaign also included MB-5 and MS-2, two development wells already producing gas. Their start-up helped bring Mnazi Bay’s current output to about 130 million cubic feet per day, while the combined production potential of existing wells is approaching 200 million cubic feet per day. These figures distinguish actual production from potential capacity.
Maurel & Prom expects Kasa could produce up to 50 million cubic feet daily and envisages first gas as early as November 2026. The minister separately cited an anticipated 30 million cubic feet per day for at least ten years. Both are projections rather than confirmed sustained production rates.
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Electricity, Manufacturing and LNG Investment in Focus
More than 80% of gas produced at Mnazi Bay is used for electricity generation at power plants serving Mtwara and Dar es Salaam, according to the energy minister’s remarks. Additional dependable supply could support industrial growth and reduce reliance on imported fuels, although gas remains a fossil fuel with associated emissions.
The government also wants wider gas use in vehicles, fertiliser production, plastics and manufacturing. TPDC is discussing small-scale liquefied natural gas projects with four prospective investors, three of them expected to be located in Mtwara. These remain proposed investments rather than operating facilities.
What the Discovery Means for State Revenue
TPDC increased its Mnazi Bay ownership from 20% to 40% in 2024, strengthening the state’s participation in future production economics. Government receipts may come from production-sharing entitlements, the state company’s interest and taxes, but the amount will depend on actual output, development costs and contractual terms.
For now, the discovery is a potentially useful addition near existing infrastructure, not an immediate windfall. Appraisal results, commencement of Kasa production and further investment decisions will determine its eventual economic contribution.
Sources: Tanzania Ministry of Energy / Maurel & Prom / The Citizen / Drilling Contractor / The Chanzo
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