DAR ES SALAAM, TANZANIA – July 2, 2025 –
A new chapter in Tanzania’s energy saga began today as the Tanzania Petroleum Development Corporation (TPDC) and Energetech-Tantel formally inked a groundbreaking Memorandum of Understanding (MOU). This pivotal alliance is poised to catapult Tanzania towards its destiny as a regional energy powerhouse and a thriving gas economy.
The signing, a landmark event echoing with national significance, unfolded in the esteemed presence of Goodluck Shirima, Commissioner for Petroleum and Gas at the Ministry of Energy. Commissioner Shirima, representing the formidable energy vision of Deputy Prime Minister and Minister for Energy, Hon. Dr. Doto Biteko, underscored the government’s unwavering commitment to this transformative endeavor.
This MOU is a direct manifestation of President Samia Suluhu Hassan’s audacious directives: to firmly establish Tanzania as a preeminent energy hub for both the Southern African Development Community (SADC) and the East African Community (EAC). It’s a bold stride towards a future powered by abundant, clean energy.
The roadmap ahead is ambitious yet meticulously planned. Over the next two years, the partnership will navigate a comprehensive journey encompassing rigorous feasibility studies, securing vital permits, intricate engineering, strategic financing, and ultimately, the genesis of Liquefied Natural Gas (LNG) production. In a testament to their dynamic approach, first LNG output is remarkably targeted within an astonishing 12 months.
At the heart of this innovative venture lies a modular, scalable strategy to unlock Tanzania’s vast natural gas reserves. This involves the construction of a state-of-the-art modular LNG plant and the deployment of cutting-edge cryogenic containers for efficient “last-mile” distribution. Initial projections forecast an output of 20 to 30 million standard cubic feet (scf) per day, with an impressive capacity to surge beyond 100 million scf, effectively meeting escalating energy demands across the nation.
Under the terms of this collaborative agreement, Energetech-Tantel will take the helm in financing, engineering, and the crucial downstream distribution, ensuring energy reaches every corner where it’s needed. TPDC, in turn, will provide essential upstream gas provision and skillfully navigate government interfaces, including all necessary permitting processes. This $80–100 million project is initially self-financed, with strategic plans to welcome institutional capital as it expands its footprint.
This initiative heralds a refreshing departure from the traditional, often cumbersome, large-scale LNG developments. Its modularity promises expedited feasibility, streamlined financial closure, and remarkably swift deployment. Unlike conventional offshore LNG plants demanding colossal multi-billion-dollar investments and years of development, this agile modular model allows for phased investment and delivers quicker, more impactful results.
“Private sector investment is the lifeblood of scalable solutions,” affirmed Goodluck Shirima, Commissioner for Petroleum and Gas, Tanzania Ministry of Energy. “This partnership will not only help us fulfil our industrialisation promise but also prioritise local content and empower Tanzanian businesses. Once operational, our households and manufacturers will benefit from clean gas energy, driving down production costs.”
Mussa Makame, Managing Director of TPDC, emphasised, “At TPDC, we champion public-private partnerships that deliver tangible solutions for Tanzanians. Our ambition 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 paramount to our strategy.”
“This is more than just a partnership; it’s a shared commitment to revolutionise Tanzania’s energy industry,” stated Alistair Naiken, CEO of Energetech-Tantel. “We are building real-energy solutions that will transform society, delivering gas where and when it’s needed most, with environmental stewardship at our core. A key focus is ensuring Tanzanians, especially our industrial customers, are the primary beneficiaries of this clean transition fuel.”
Daniel Gabai, President and COO of Tantel Holdings, added, “Tanzania stands as the most promising nation in East Africa. At Tantel Holdings, we invest not merely in potential but in people, embracing significant infrastructure challenges. We firmly believe Tanzania will emerge as 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 Moshe Schlisser, Chairman, Tantel Holdings. “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 catalyze industrial growth, transforming Tanzania into an innovation hub for Africa.”
