DAR ES SALAAM, TANZANIA – In a nation brimming with ambition and abundant natural resources, a new dawn is breaking over Tanzania’s energy landscape. A landmark Memorandum of Understanding (MOU) signed on July 2, 2025, between the Tanzania Petroleum Development Corporation (TPDC) and Energetech-Tantel isn’t just a business deal; it’s a profound commitment to reshape the country’s energy future, positioning it as a dynamic regional energy hub and a robust gas economy. This strategic partnership is poised to redefine energy accessibility, foster industrial growth, and elevate Tanzania onto the global stage.
At the heart of this transformative initiative is a shared vision for delivering “real-energy solutions that change society,” as articulated by Alistair Naiken, CEO of Energetech-Tantel. Unlike the colossal, multi-billion-dollar offshore LNG projects that often face protracted timelines, this collaboration champions a modular, scalable approach to natural gas development. This innovative strategy promises rapid deployment, with a remarkably ambitious target of first LNG output within 12 months and comprehensive project completion within two years.
A New Paradigm: Efficiency, Modularity, and Local Impact
The traditional model of energy infrastructure development is being challenged by this pioneering project. Daniel Gabai, President and COO of Tantel Holdings, highlights this shift: “Tanzania is the most promising country in the East African region. At Tantel Holdings, we not only invest in potential, but in the people. That has been our guiding principle in Tanzania.” This people-centric philosophy underpins the entire venture, emphasizing sustainable and scalable solutions that truly benefit the nation.
The core of Energetech-Tantel’s contribution involves the construction of a turnkey modular LNG plant and the implementation of a virtual pipeline system utilizing cryogenic containers for last-mile distribution. This nimble approach allows for phased investment and quicker, more impactful results, making energy accessible even to off-grid and rural communities. Projected initial output of 20-30 million standard cubic feet (scf) per day, with the potential to exceed 100 million scf, underscores the project’s capacity to meet growing energy demands.
TPDC’s role is equally crucial. As Managing Director Mussa Makame explains, “At the Tanzania Petroleum Development Corporation (TPDC), we champion public-private partnerships that deliver solutions for Tanzanians.” TPDC will provide essential upstream gas provision and facilitate government interfaces, including crucial permitting processes. This seamless collaboration, enabled by Tanzania’s forward-thinking Petroleum Act, is designed to harness the nation’s extensive natural resources and leverage private sector expertise.
Catalyzing Industrialization and Empowering Tanzanians
A key differentiator of this project, as stressed by Energetech-Tantel’s Alistair Naiken, is the commitment to ensuring “that the energy is consumed by Tanzanians first, before we export it.” This domestic focus is pivotal for Tanzania’s industrialization agenda. Commissioner for Petroleum and Gas, Goodluck Shirima, echoes this sentiment: “Private sector investment in infrastructure development is key for governments in delivering scalable solutions for any country. The partnership…will enable us to deliver on our industrialization promise for Tanzania.”
The envisioned primary customers for this clean energy are industrial players, with natural gas poised to replace more polluting fossil fuels currently powering many Tanzanian manufacturers. This transition promises a significant reduction in production costs, a benefit that Commissioner Shirima asserts will ultimately be “transferring that value to Tanzanians.” Furthermore, the emphasis on local content development will empower Tanzanian people and businesses, ensuring that the economic ripple effects of this project are felt broadly across the nation.
A Vision for Regional Leadership and Innovation
The ambition extends beyond national borders. Daniel Gabai envisions Tanzania as “an emerging force in Africa,” destined to become a “leading force for growth, driven by an enabling policy environment.” This project, he believes, will not only create energy solutions for the local market but also position Tanzania to “export those solutions to the greater East African region,” becoming the “most efficient clean energy project in Africa.”
This grand vision is shared by Moshe Schlisser, Chairman of Tantel Holdings, who states, “The fundamentals for any country to develop is to ensure that there’s an availability of energy solutions.” He foresees this partnership delivering “scalable, sustainable energy to make Tanzania a leader in renewable energy in East Africa.”
The ripple effects of this initiative are expected to be profound. Direct employment for thousands of Tanzanians is a tangible outcome, but the indirect impact, with an abundance of gas driving industrial growth, will be even more far-reaching. As Schlisser confidently concludes, this project will position “Tanzania as an innovation hub for Africa.”
The signing of this MOU marks a decisive step in Tanzania’s journey towards energy independence and regional leadership. By embracing modularity, prioritizing local consumption, and fostering robust public-private partnerships, Tanzania is not just developing its natural gas resources; it is building a cleaner, more prosperous future for its citizens and setting a powerful example for the entire continent.