THE drilling of three new natural gas wells is scheduled to begin in November 2025 in the Mnazi Bay Block, located in Mtwara Region, as Tanzania ramps up efforts to boost its domestic gas production.

The project is expected to raise output by over 30 million cubic feet per day, significantly enhancing the country’s energy capacity and economic potential. This will be the first drilling activity in Mnazi Bay in a decade, following the last well drilled in 2015. The renewed exploration marks a strategic shift in Tanzania’s natural gas sector and reflects a strong government push to expand the industry under the sixth phase administration.

Speaking during a stakeholders’ workshop in Dar es Salaam on Thursday, Charles Nyangi, acting director general of the Petroleum Upstream Regulatory Authority (PURA), said the initiative is a testament to the government's commitment to long-term energy development.

“Ten years since the last well was drilled, a new chapter is being written in Mnazi Bay. These wells will significantly increase production, strengthen energy security and open up new opportunities for investment and industrialisation,” Nyangi said.

The new drilling effort follows a major policy move made in 2024, when the Tanzania Petroleum Development Corporation (TPDC) increased its equity stake in the Mnazi Bay Block from 20 percent to 40 percent. The change has strengthened TPDC’s role in decision-making and given the government greater leverage in managing strategic energy assets.

Nyangi described the development as “historic,” noting that the increased stake enhances national ownership and potential revenue from the gas block, which currently has five operational wells producing between 90 and 100 million cubic feet per day.

PURA also reaffirmed its dedication to local content participation, ensuring Tanzanians and local service providers benefit from the project through job creation, supply chain engagement, and skills development.

“It is PURA’s mandate to ensure Tanzanians are not left behind. We are committed to making sure they participate fully and benefit meaningfully at every stage—from exploration to production,” Nyangi emphasised.

The anticipated increase in natural gas production will help meet growing demand in sectors such as electricity generation, industrial processing, household energy, and automotive use. The expanded supply is expected to reduce reliance on imported fuels, lower production costs, and attract new investments to the southern corridor.