In a significant move to accelerate its energy sector, Tanzania has granted its first natural gas project licence in 13 years to Oman-based ARA Petroleum Llc. This development is part of efforts to fast-track the exploitation of Tanzania’s substantial natural gas reserves, despite previous delays in similar ventures.
ARA Petroleum was officially licensed on September 10 to operate the Ntorya gas field in southern Tanzania. The field is estimated to contain 1.6 trillion cubic feet of natural gas. Under a $180 billion agreement with the Tanzania Petroleum Development Corporation (TPDC), production is expected to commence within a year.
This makes ARA the first multinational to receive a gas licence in Tanzania since 2011, making it the fourth overall investor in Tanzania’s gas sector. Other international stakeholders include Pan African Energy, France’s Maurel et Prom, and Ndovu Resources Ltd. Ndovu, a UK-based Aminex Plc subsidiary, initially operated the Ntorya project before selling a stake to ARA in 2020.
The revised agreement for the Ntorya project emerged following President Samia Suluhu Hassan’s visit to Oman in 2022. The State-run TPDC will hold a supervisory 15% interest, while ARA, with a 63.75% stake, will manage operations over the next 25 years. Project manager Patrick Kabwe noted that efforts are underway to begin production by mid-2025, with plans to enhance existing infrastructure and drill five additional wells.
The Ntorya project plans to produce 60 million cubic feet of natural gas per day, increasing to 140 million cubic feet within three years. This is seen as pivotal for Tanzania’s shift towards sustainable energy.
Despite this progress, Tanzania faces criticism over its slow approval process for other projects, such as the stalled Lindi liquified natural gas initiative, now projected to cost $42 billion. Officials attribute such delays to complex negotiations over technical and financial terms.
Globally, the natural gas sector is experiencing a shift as countries balance fossil fuel use with sustainable practices. According to the International Energy Agency, investment in clean energy is outpacing fossil fuels, highlighting the global pivot towards renewable resources (IEA, 2023).
Tanzania’s reserves, totaling 57.54 trillion cubic feet, currently supply 40% of the country’s electricity, supporting its energy diversification goals.
