Govt sets out 25 year oil, gas roll out plans

By Guardian Reporter , The Guardian
Published at 10:14 AM May 02 2025
DEPUTY Prime Minister and Energy Minister, Dr. Doto Biteko
Photo: File
DEPUTY Prime Minister and Energy Minister, Dr. Doto Biteko

THE government has launched a 25-year strategic plan for the nation’s oil and gas industry, from 2024/25 through 2049/50.

Dr Doto Biteko, the deputy premier and Energy minister, unveiled the plan here on Wednesday, outlining measures intended to maximize the revenue potential in the country’s petroleum sector.

This includes the need to fast-track the development of key natural gas blocks to meet rising domestic and international energy demand, he said, with the Tanzania Petroleum Development Corporation’s (TPDC) anchoring this strategy.

“This strategy will allow us to fully leverage our oil and gas resources and ensure more Tanzanians benefit from cleaner, affordable energy,” he said, affirming that the government wishes to see industries, vehicles and households connected to natural gas infrastructure.

This is part of shifting away from carbon-heavy fuels, he stated, citing the targeted gas blocks as Mnazi Bay North, Eyasi Wembere, Songo Songo West, Lindi–Mtwara, and the liquefied natural gas (LNG) project, requiring urgent development.

TPDC needs to strengthen gas distribution by expanding the pipeline infrastructure and deploying mobile LNG and compressed natural gas (CNG) systems to reach underserved areas.

These are virtually all areas beyond the Mtwara–Dar es Salaam gas pipeline corridor, he said, underlining that to enhance financial sustainability, TPDC needs to design innovative financing models to roll out the work.

It also needs to boost commercial performance and gradually reduce dependency on state subsidies, he said, pointing at the need for robust transparency, accountability and alignment with environmental, social and governance (ESG) principles.

These requirements will improve TPDC’s standing as a credible and responsible energy actor, he stated, urging the corporation to work collaboratively with international energy companies, private investors and development partners to enhance its capital base.

It also needs to bring in the capital, technology and expertise required to execute this plan successfully, he asserted, highlighting the importance of human capital tied with skills enhancing programmes.

TPDC similarly needs an organizational culture that promotes innovation, efficiency and adaptability, he said, projecting that the oil and gas subsector could contribute over 15 percent to GDP by 2030 if the strategic plan is effectively implemented.

Ambassador Ombeni Sefue, the TPDC board chairperson, said the plan is grounded in national energy priorities and global trends, with an emphasis on expanding natural gas usage.

Beyond conventional applications such as electricity generation, industrial use, cooking and transport, the plan envisions gas as a key input in value-added sectors like petrochemicals and fertilizer manufacturing, he pointed out.

“This roadmap prepares Tanzania for a future where clean energy and technological innovation will be central to national energy security and economic growth,” he added.