Tanzania Signs Agreements for First Small-Scale LNG Project To Extend Natural Gas Access to Arusha, Dodoma, Mwanza, and Zanzibar

The Tanzania Petroleum Development Corporation (TPDC), TAQA Arabia subsidiary Rosetta Energy Solutions, and pan-African infrastructure investor Africa50 have signed agreements to develop Tanzania’s first small-scale LNG project.

The initiative, known as the East Africa LNG (EALNG) project, will extend natural gas access to Arusha, Dodoma, Mwanza and Zanzibar, regions currently outside the reach of Tanzania’s existing pipeline network.

Mini LNG plants are small-scale facility that convert natural gas into liquefied natural gas (LNG) by cooling it to about −162°C, reducing its volume by roughly 600 times.

Mini plants make sense for smaller or remote gas resources and domestic industrial customers, whereas large LNG projects are designed around large gas reserves and export volumes.

TPDC, Rosetta Energy Solutions and Africa50 signed implementation and gas sales agreements for the project in August 2026, formalising their partnership to develop the facility.

TPDC is seeking an equity stake exceeding 30% in the joint venture while also serving as the project’s natural gas supplier, a dual role confirmed in the partnership’s implementation agreements.

The joint venture plans to liquefy domestic natural gas and distribute it using specialized vehicles, deploying scalable and modular small-scale LNG technology instead of extending fixed pipeline infrastructure.

The facility is designed to serve industrial, residential and transport customers located beyond the reach of Tanzania’s existing natural gas pipeline network, particularly in the four target regions.

The Director of Planning at TPDC, Derick Moshi, outlined the project’s current preparatory status and the expected timeline for completing implementation once agreements take effect, explaining that the feasibility study is completed, the process of acquiring land is ongoing, and the project will take 18 months from the signing of the agreement.

Tanzania’s current natural gas consumption is dominated by power generation, which accounts for 74.43% of total usage, followed by industrial consumers at 24.65%, while compressed natural gas and household use together represent just 0.92%.

The country currently operates 12 compressed natural gas filling stations and has 16,154 registered CNG vehicles on the road, alongside 59 industries and 1,654 households connected to gas networks.