Tanzania has officially entered a new and historic phase in global energy and minerals development after launching a major helium production project in Songwe Region, positioning the country among a very small group of global suppliers of the strategic gas.
The milestone was marked on May 2, 2026, in Songwe during the signing of a production agreement between the Government of Tanzania and Helium One Global Limited through Songwe Helium Limited, a joint venture company established to develop and commercialize helium resources in the country.
The agreement transforms years of exploration work into a full development stage project and places Tanzania on the global map of helium producers at a time when demand for the gas is rising sharply worldwide.
Helium is one of the most strategic and scarce gases in the world, with no substitute in many modern applications.
It is widely used in medical equipment such as MRI scanners, semiconductor manufacturing, aerospace technologies, scientific research, and advanced digital systems including fibre optics and quantum computing.
Speaking during the signing ceremony, Deputy Minister for Minerals, Dr. Steven Kiruswa, said the development marks a major turning point for Tanzania’s mining sector and global helium supply chains.
He said global helium production is currently dominated by a few countries, with the United States and Qatar accounting for more than 75 percent of supply, while other producers such as Russia, Algeria, Canada, China and Poland contribute smaller volumes.
He added that global demand has already surpassed 6 billion cubic feet per year and is expected to rise beyond 8.5 billion cubic feet by 2030 due to increasing use in high-technology industries.
Dr. Kiruswa said Tanzania’s entry into production gives the country a rare opportunity to participate in a high-value market with limited competition and strong long-term demand.
He noted that the Southern Rukwa helium project, which includes the Songwe block, has strong geological potential and could help position Tanzania as a reliable global supplier of helium.
He further explained that helium production will also be developed alongside associated gases such as hydrogen, with separate systems to ensure proper management of revenues and resources.
Under the agreement, the Government of Tanzania will hold a 17 percent equity stake in Songwe Helium Limited, allowing it to directly participate in decision-making and benefit from project profits.
Dr. Kiruswa said the arrangement reflects President Samia Suluhu Hassan’s vision that natural resources must directly contribute to national development and improve citizens’ livelihoods.
He said the project is expected to generate wide economic benefits, including job creation for Tanzanians, especially young people, business opportunities for local suppliers, improved infrastructure, and increased government revenue through taxes, royalties, and dividends.
Helium One Global Limited Managing Director, Lorna Blaisse, said the signing marks a major milestone for both Tanzania and the global helium industry.
She said exploration work has already confirmed strong helium presence in Songwe, particularly at the Itambula West-1 well drilled in 2024.
According to her, extended testing in 2024 recorded helium concentrations of up to 5.5 percent at surface level and as high as 7.6 percent in fractured rock formations, confirming strong commercial potential.
She said the company will now move into development stages, including final project planning, environmental and social impact management, infrastructure design, and procurement of production equipment.
She added that Helium One Global remains committed to responsible production and ensuring that Tanzania’s helium meets international quality standards.
Chairman of the government negotiation committee, Professor Sifuni Mchome, said the agreement reflects a fair and balanced partnership where Tanzania directly benefits from its natural resources.
He said through the equity participation model, the government will earn dividends, royalties, taxes, and other revenues while also participating in strategic project decisions.
He added that the negotiations were conducted transparently and professionally, ensuring that both the country and investors benefit.
Songwe Regional Commissioner, Jabiri Makame, said the region is ready to fully support the project, noting that Songwe is already rich in mineral resources, including rare earth elements, with ongoing exploration activities expanding its potential.
He said the project will strengthen the regional economy and improve social services through increased investment and infrastructure development.
The helium project covers approximately 480 square kilometers, extending across Momba District in Songwe Region and part of Rukwa Region.
Helium is a highly valuable and irreplaceable gas that plays a critical role in modern technology, medicine, and scientific innovation.
With over 60 million US dollars already invested, the project is expected to move into production within 18 months, marking a major step in Tanzania’s journey toward becoming a key player in the global critical minerals and energy market.
