Alfred Zacharia
Dar es Salaam. Tanzania’s natural gas sector is making strong gains in both production and local participation, as the government continues reforms aimed at ensuring that citizens benefit more directly from national resources.
The Petroleum Upstream Regulatory Authority (Pura) said local content enforcement had improved significantly, with Tanzanians now making up about 85 percent of the workforce in the upstream petroleum sub-sector—up from below 50 percent just a few years ago.
“This is a major step forward,” said Pura Director General Charles Sangweni in a press briefing on May 19, adding that “Our efforts to build local capacity and strengthen oversight are now showing real results.”
The share of local goods and services has also increased to 60 percent, from under 40 percent previously.
According to Mr Sangweni, this growth follows the continued registration of Tanzanian service providers and professionals through the Common Qualification System (CQS), which has opened more doors for local businesses and workers.
At the same time, gas production levels have risen sharply.
the past four years, Tanzania has produced more than 301 billion standard cubic feet (scf) of natural gas—158.98 billion scf from Songo Songo and 142.35 billion scf from Mnazi Bay.
Annual average production has grown to 39.74 billion scf in Songo Songo and 35.59 billion scf in Mnazi Bay.
The gas is used for power generation, industrial needs, domestic use, and even for vehicles through compressed natural gas (CNG).
Mr Sangweni said the reforms introduced since March 2021 have helped boost operational efficiency in the gas sector, with digital infrastructure now enabling automated monitoring and reporting of petroleum activities.
“We now have real-time visibility into operations, which strengthens our ability to regulate effectively,” he said.
The move also reduces room for underreporting or mismanagement.
But one of the most striking developments is the government’s recovery of more than Sh340 billion in revenue that investors had claimed as part of their capital recovery costs.
After audits of Production Sharing Agreements (PSAs), the government found the claims unjustified and redirected the money into the revenue-sharing system.
“These funds were presented by investors as part of their cost recovery. But our verification process showed they didn’t qualify,” Mr Sangweni said.
The money, according to him, has been returned to the people of Tanzania.
The recovery highlights the government’s growing capacity to manage strategic contracts and ensure value for money in the extractive sector.
To support long-term growth, the government is also preparing for Tanzania’s fifth oil and gas licensing round—the first since 2013.
Mr Sangweni said the round is aimed at attracting responsible investors, expanding national reserves, and raising government revenue.
“This is a new phase for Tanzania. We want investors who share our vision for inclusive and transparent development,” he said.
Looking ahead, the government remains focused on finalising negotiations for the Liquefied Natural Gas (LNG) project, which is expected to be one of the largest investments in the country’s history.
“The LNG project is expected to create jobs, earn foreign currency, spur the development of gas-based industries, and boost the country’s industrial exports. It will transform our energy future,” said Mr Sangweni.
With stronger oversight, rising production, and higher local participation, Tanzania’s gas sector is positioning itself as a model for inclusive and accountable resource management. But experts caution that sustained commitment and transparency will be essential to turn these gains into lasting development outcomes.