Tanzania’s national oil company the Tanzania Petroleum Development Corporation (TPDC) and energy trading and infrastructure company Energetech-Tantel has solidified a pivotal partnership by signing a significant Memorandum of Understanding (MOU). This landmark agreement is strategically designed to accelerate the development and widespread distribution of natural gas throughout Tanzania.

The signing, a momentous occasion, was witnessed by Tanzania’s Ministry of Energy Commissioner for Petroleum and Gas Goodluck Shirima, who was representing the nation's highest energy authority, the Deputy Prime Minister and Minister for Energy, Hon. Dr. Doto Biteko.

This MOU powerfully echoes the nation's ambitious strategic energy goals. It directly aligns with President Samia Suluhu Hassan's resolute presidential directives to establish Tanzania as a leading regional energy hub for both the Southern African Development Community (SADC) and the East African Community (EAC).

The MOU outlines an ambitious two-year roadmap encompassing comprehensive feasibility studies, essential permitting, detailed engineering, securing financing and, ultimately, liquefied natural gas (LNG) production. Targeted first output of LNG is expected within a remarkably ambitious 12 months.

At its core, this innovative project aims to harness Tanzania's natural gas resources and make them accessible as energy through a modular, scalable approach. This will involve the construction of a turnkey modular LNG plant and the implementation of cryogenic containers for efficient last-mile distribution. The initial output is projected to be between 20-million and 30-million standard cubic feet (scf) a day, with significant potential to scale beyond 100-million scf, addressing growing energy demands.

Under the terms of the agreement, Energetech-Tantel will spearhead the financing, engineering, and downstream distribution aspects of the project, focusing on delivering energy to where it is needed most. TPDC will provide crucial support in upstream gas provision and facilitate government interface, including the necessary permitting processes. The project, estimated at $80-million to $100-million, is being self-financed in its initial phase, with strategic plans to onboard institutional capital as the venture expands.  

The initiative represents a significant departure from traditional large-scale LNG developments, leveraging modularity to enable faster feasibility, streamlined financial closure, and rapid deployment. Unlike conventional offshore LNG plants that demand billions in investment and years of development, this modular model allows for phased investment and quicker, more impactful results.

Shirima added, "Private sector investment is crucial for delivering scalable solutions. This partnership will enable us to fulfill our industrialisation promise for Tanzania, prioritising local content development and empowering Tanzanian businesses. Once operational, Tanzanian households and manufacturers will benefit from clean gas energy, leading to reduced production costs."

"At TPDC, we champion public-private partnerships that deliver solutions for Tanzanians," said TPDC MD Mussa Makame. "Our goal is to leverage our natural resources to become a regional leader in clean energy. We are proud to partner with Energetech-Tantel to provide clean, efficient energy to off-grid and rural communities, powering homes, businesses and industries. Accelerating gas production with a commercial focus and involving the private sector is key to our strategy."

"This is not just a partnership, but a shared commitment to transform Tanzania's energy industry," stated Energetech-Tantel CEO Alistair Naiken. "We are building real-energy solutions that will change society, delivering gas where and when it's needed most, with the environment at the core of our operations. A key focus is ensuring Tanzanians consume this energy first, especially industrial customers, as a clean transition fuel."

Tantel Holdings President and COO Daniel Gabai commented, "Tanzania is the most promising country in East Africa. At Tantel Holdings, we invest not only in potential but in people, embracing large infrastructure challenges. We believe Tanzania will become a leading force for growth in Africa over the next decade, and this project will be the most efficient clean energy project on the continent, serving both local and regional markets."

"The availability of energy solutions is fundamental for any country's development," concluded Tantel Holdings chairperson Moshe Schlisser. "Through this partnership, we expect to deliver scalable, sustainable energy, positioning Tanzania as a leader in renewable energy in East Africa. This project will directly employ thousands of Tanzanians and indirectly drive industrial growth, making Tanzania an innovation hub for Africa."