Dar es Salaam. Tanzania’s natural gas production fell sharply in the second quarter of 2025, dropping by 24.5 percent to 15,493.5 million standard cubic feet (Mmscf) compared to the same period in 2024.
The Bank of Tanzania’s (BoT) Consolidated Zonal Economic Performance report ending March showed that the steepest decline occurred at the Songo Songo field, historically one of the country’s largest gas producers.
The decline was largely driven by reduced demand from the Tanzania Electric Supply Company Limited (Tanesco), following the commissioning of the Julius Nyerere Hydropower Project (JNHPP), which began supplying the national grid.
“Natural gas production is closely tied to electricity demand. With JNHPP beginning operations, reliance on gas-fired power plants has eased significantly,” the BoT report noted.
At the same time, overall domestic electricity generation grew by 13.4 percent to 3,081.4 gigawatt hours (GWh), supported by hydropower output and ongoing infrastructure investments.
In 2023 production of natural gas decreased by 27 percent to 16,013.6 million Standard Cubic Feet (MMSCF) from the volume produced in the corresponding, with Mnazi Bay gas field accounting for 54.7 percent of total gas production.
The Petroleum Upstream Regulatory Authority (Pura) and the Tanzania Petroleum Development Corporation (TPDC) has allayed any fears saying the decline does not signal weakening prospects for the sub-sector.
Instead, they argue that natural gas remains central to Tanzania’s economic growth, particularly in supporting industries, transport, households, and the government’s clean cooking agenda.
Pura director general Charles Sangweni told The Citizen on Friday, September 5, that while Tanesco has historically consumed the bulk of gas, new demand is emerging.
“We are implementing the clean cooking agenda, and natural gas is among the renewable energies where the demand will be needed,” he said.
Adding Pura will continue to search for petroleum products and create a conducive environment for investors.”
He added that natural gas will play a key role in Vision 2050, which targets a $1 trillion economy powered by diverse renewable sources.
On the other hand, TPDC acting Director for Petroleum and Gas Business, Mr Gilbert Emmanuel, noted that the decline was expected as hydropower capacity grew. He stressed that replacing Tanesco with new customers will take time.
“For example, if it is a factory, it must first be built and equipped to use gas—it is not a matter of Tanesco releasing gas today and another customer immediately taking over,” he explained.
He said TPDC is seeking customers in fertilizer production, industries, households, and transport. Mini-LNG technologies are also being explored to distribute gas in areas not served by pipelines.
Earlier this year, TPDC production manager Felix Nanguka said discussions with companies interested in mini-LNG were at an advanced stage.
“Transporting natural gas via pipeline is expensive. If these discussions are finalized, regions beyond pipeline reach will be able to access gas through such technologies,” he said.
TPDC is also in talks with Uganda on building a pipeline along the East African Crude Oil Pipeline (Eacop) corridor, opening up another potential export market.
The BoT report showed that while hydropower generation expanded, output at thermal plants—Ubungo II, Ubungo III, Kinyerezi I, Kinyerezi II, Kinyerezi Extension, and Songas—declined, reflecting reduced reliance on gas-fired electricity.
In the Northern zone, output at New Pangani Falls and Hale Hydropower plants fell due to low water levels and ongoing turbine installations.
Despite these shifts, Tanzania’s gas sector has posted strong growth in earnings figures from the National Bureau of Statistics (NBS) show revenues rose from $55.1 million in 2020 to $144.1 million in 2024, representing a 161 percent increase.
Presenting the 2025/26 energy budget, Deputy Prime Minister and Energy Minister Dr Doto Biteko said Mnazi Bay in Mtwara produced 25.51 billion cubic feet of natural gas by April 2025, while Songo Songo produced 21.93 billion cubic feet, both meeting domestic demand.
“The gas business will continue to expand as demand remains strong in various areas,” Dr Biteko said.
The latest figures highlight Tanzania’s balancing act in energy security—scaling up hydropower while maintaining natural gas production as a vital resource for industrialization and economic transformation.
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