Gas
Tanzania holds 57 trillion cubic feet of natural gas reserves, mostly offshore, positioning the country as a strategic supplier in the global transition to cleaner energy sources.
The gas sector is anchored by major offshore discoveries that have attracted global investors and is being monetized through a USD 42 billion Liquefied Natural Gas (LNG) project, alongside a growing domestic infrastructure network of processing plants, transmission pipelines, and Compressed Natural Gas (CNG) distribution.
Gas is central to Tanzania's energy mix, feeding power plants and industries, supporting a fleet of CNG vehicles, and underpinning plans for large-scale exports to international markets and neighbouring countries.
Contents
Natural Gas Reserves and Resource Base
Tanzania has 57 trillion cubic feet of natural gas reserves, mostly located offshore in the deep offshore basin.
Some of this gas is already used for domestic power generation and industry, while the balance is earmarked for LNG export development.
Major offshore natural gas discoveries have positioned Tanzania as a potential energy powerhouse, attracting global investors since the exploration boom of the 2005 to 2015 period.
The Long-Term Perspective Plan identifies natural gas, alongside critical minerals, rare metals, and steel, as one of the high-impact industries expected to drive Tanzania's industrial transformation.
National Natural Gas Infrastructure (NNGI)
The National Natural Gas Infrastructure (NNGI) was commissioned in 2015 to meet the rapidly growing demand for natural gas.
Tanzania's natural gas infrastructure today comprises processing plants, transmission pipelines, and distribution networks.
Four processing plants have a combined capacity of 470 million standard cubic feet per day (MMscfd).
The transmission system consists of three pipelines totaling 815 km, including 793 km for the main transmission lines and additional connection pipelines, with a combined capacity of 1,211 MMscfd[2].
At the distribution level, the network reached 186 km in 2025, supplying power plants, industries, and residential areas in Dar es Salaam, Mtwara, and Lindi.
In 2025, the Government awarded the engineering, procurement, and construction (EPC) contract for a new pipeline connecting the Ntorya gas field to the Madimba Gas Processing Facility.
In parallel, Tanzania is pursuing cross-border transmission projects to supply natural gas to Kenya and Uganda.
Tanzania LNG Project
The Tanzania Liquefied Natural Gas (LNG) Project, also known as the Likong'o-Mchinga LNG Project, is a planned USD 42 billion venture designed to monetize the country's offshore natural gas reserves, estimated at 57 trillion cubic feet.
Gas will be transported via subsea pipelines to a processing plant and export terminal in Likong'o, Lindi.
The facility is expected to produce 10 million metric tonnes of LNG annually.
Negotiations with investors, including Shell and Equinor, are progressing, with a final investment decision targeted for 2026.
Once operational, the project is expected to generate substantial Government revenue, create thousands of jobs, and strengthen Tanzania's energy security and export capabilities.
The project involves drilling development wells in deep offshore fields, constructing subsea pipelines to transport gas onshore, and building an LNG plant with jetty loading facilities.
Compressed Natural Gas (CNG) and Domestic Use
Compressed Natural Gas (CNG) distribution has expanded to support approximately 16,000 CNG-powered vehicles in Tanzania.
Expansion projects are underway to extend the distribution network to industries, hotels, commercial entities, and households.
Distribution networks currently supply power plants, industries, and residential areas concentrated in Dar es Salaam, Mtwara, and Lindi.
Natural gas also feeds the country's thermal power generation, contributing to the 4,181.71 MW of installed electricity capacity reached in 2025[1].
Regional Energy Integration and EACOP
Tanzania is developing cross-border transmission projects to export natural gas to Kenya and Uganda, reinforcing its role as a regional energy hub.
Alongside gas, the East African Crude Oil Pipeline (EACOP) is a major regional energy project designed to transport crude oil from Uganda's Lake Albert oilfields to the port of Tanga.
EACOP spans 1,433 km, with 80% of its length within Tanzania, and will have a peak capacity of 246,000 barrels per day.
Its shareholders are TotalEnergies (62%), Uganda National Oil Company Limited (UNOC, 15%), Tanzania Petroleum Development Corporation (TPDC, 15%), and China's CNOOC (8%).
EACOP integrates advanced fiber-optic cables that can increase the capacity of local operators, supporting wider and faster internet connectivity in both Uganda and Tanzania.
Policy Framework and Vision 2050 Alignment
Long-Term Perspective Plan Priority
The Long-Term Perspective Plan (LTPP) identifies natural gas as one of the strategic high-impact industries expected to drive Tanzania's industrial transformation, alongside critical minerals, rare metals, and steel.
Vision 2050 Energy Accelerator
Under Accelerator 2 (Reliable, Affordable, and Clean Energy), Vision 2050 targets the expansion of hydropower, solar, wind, and natural gas capacity to achieve 90% energy access by 2050.
The framework also calls for improved transmission and distribution networks and a reduction in reliance on biomass fuels.
Investment Opportunities in Gas
Investment opportunities exist in LNG infrastructure, gas processing, and exports, leveraging Tanzania's 57 trillion cubic feet of proven reserves.
The USD 42 billion Likong'o-Mchinga LNG Project, targeting a final investment decision in 2026 and 10 million metric tonnes of annual LNG output, opens opportunities across upstream drilling, subsea pipelines, plant construction, and jetty loading facilities.
Downstream, the expansion of the CNG vehicle fleet (approximately 16,000 vehicles in 2025) creates openings in refuelling infrastructure, vehicle conversion, and CNG retail.
The extension of the 186 km distribution network to industries, hotels, commercial entities, and households offers commercial gas distribution opportunities in Dar es Salaam, Mtwara, and Lindi.
Cross-border transmission projects to Kenya and Uganda open opportunities in regional pipeline development, gas trading, and integrated energy services.
New processing capacity, exemplified by the 2025 EPC award for the Ntorya to Madimba pipeline, points to further investment in gas gathering, treatment, and connection infrastructure.
Last Update: May 2026
References
Want to know more about Gas in Tanzania? Our free overview of the Tanzania Business and Investment Guide 2026 covers Gas, plus key sectors and investment opportunities. The complete 141-page edition includes policies, taxation, key regulations, full macroeconomic data, and sources.
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