TPDC inks deals to boost mini LNG plants, construct Ntorya–Madimba pipeline

Dar es Salaam. The Tanzania Petroleum Development Corporation (TPDC) has signed key agreements aimed at expanding the country’s natural gas infrastructure and enhancing energy availability both domestically and regionally.

At the Kilimanjaro Hyatt Regency Hotel in Dar es Salaam, TPDC entered into a Memorandum of Understanding (MoU) with Energetech-Tantel for the development of small-scale liquefied natural gas (LNG) plants.

The signing, witnessed by the Commissioner for Petroleum and Gas in the Ministry of Energy, Mr Goodluck Shirima—on behalf of the Deputy Prime Minister and Minister for Energy, Dr Doto Biteko—marks a significant step in implementing President Samia Suluhu Hassan’s directive to make Tanzania a regional energy hub for the SADC and EAC regions.

In parallel, TPDC also signed a contract for the construction of a 14-inch gas pipeline from Ntorya to the Madimba gas processing plant in Mtwara Region.

The project, expected to be completed in 12 months, will be implemented by Chinese firms China Petroleum Pipeline Engineering Co. Ltd (CPP) and China Petroleum Technology and Development Corporation (CPTDC), at an estimated cost of Sh120 billion.

“The pipeline will have the capacity to transport 140 million standard cubic feet of gas per day—enough to generate up to 700 megawatts of electricity. This is a critical project for the natural gas supply chain,” TPDC Managing Director Mr Mussa Makame said.

Mr Makame underscored the need to identify new gas sources, noting that the existing fields of Songo Songo and Mnazi Bay, which have been in production for 20 and 18 years respectively, are gradually depleting.

Under the MoU with Energetech-Tantel, initial production from the planned mini LNG facilities is projected to range between 20 and 30 million cubic feet per day, with potential scalability beyond 100 million cubic feet.

Energetech-Tantel will spearhead financing, engineering, and distribution, targeting underserved areas where demand for clean energy remains unmet.

Mr Makame further explained that the Ntorya–Madimba pipeline project includes pipeline construction by TPDC and well drilling to be carried out by ARA Petroleum, both of which are scheduled for completion within a year.

He added that 11 villages will be directly impacted by the project, with environmental assessments already conducted and compensation paid to affected residents.

On his part, CPP Managing Director Mr Bai Zhengshuai pledged to execute the pipeline project efficiently and in full compliance with Tanzanian laws.

“We will complete this project on time and in accordance with national regulations. This is an important undertaking in strengthening our cooperation,” he said.

Both developments represent a broader strategy to harness Tanzania’s natural gas potential for industrialisation, power generation, and export, while reinforcing the country’s position in regional energy markets.