Tanzania is seeking to turn its more than 57 trillion cubic feet (tcf) of discovered natural gas reserves into a bigger economic opportunity by expanding domestic use, attracting investment and connecting the resource to regional and international markets.
Deputy Energy Minister Salome Makamba said the country’s large gas reserves alone would not guarantee economic gains, stressing the need for investment, infrastructure, reliable markets and stronger private-sector participation to develop a competitive gas value chain.
“We have learnt that having large gas resources is not enough. The value of these resources comes when they are transformed into reliable and competitive energy that drives economic development,” Ms Makamba said.
She was speaking at Gastech 2026 in Bangkok, Thailand, during a high-level panel discussion titled “The New Energy Powers: Who Will Shape the Next Era of Gas Supply?”
The discussion brought together energy-sector stakeholders to examine changing global gas demand, geopolitical developments, emerging suppliers and the strategies resource-rich countries need to adopt to remain competitive in the next phase of the gas market.
Tanzania’s gas story dates back to the discovery of Songo Songo in the 1970s, followed by commercial production in 2004.
Ms Makamba said the experience showed that discovering a resource was only the beginning, with the country now needing to focus on infrastructure, investment and markets capable of converting gas reserves into wider economic benefits.
Tanzania has more than 57 tcf of discovered natural gas, much of it located offshore. The country has, however, already used onshore and shallow-water resources to support electricity generation and other economic activities.
Songo Songo and Mnazi Bay have become important sources of gas for power generation, while natural gas is also being used by industries, institutions, households and the transport sector through compressed natural gas (CNG).
According to Ms Makamba, electricity generation remains the largest consumer of natural gas, accounting for 69 percent of domestic use.
Industries account for 27 percent, transport three percent, while institutions and households account for one percent.
The figures underline the central role gas continues to play in Tanzania’s energy system, particularly as the country seeks to expand industrial production and improve energy reliability.
Ms Makamba said Tanzania should not treat domestic consumption and plans to develop international gas markets as competing priorities.
Instead, she said, both markets should be developed simultaneously to increase demand, expand infrastructure and maximise the economic value of the country’s reserves.
“Domestic and regional markets can provide economic benefits more quickly, build infrastructure and strengthen local capacity, while large export projects can bring in significant investment, technology and access to international markets,” she said.
The approach could allow Tanzania to use gas to address immediate domestic energy needs while positioning the country to benefit from international demand.
Ms Makamba said the next generation of global gas suppliers would not necessarily be determined by the size of their reserves.
Countries with the right combination of investment policies, infrastructure, market access and local participation, she said, would be better positioned to compete.
“Tanzania has an opportunity to be among those countries because of the size of its resources, its strategic position in East Africa, growing energy demand and ongoing efforts to develop infrastructure and gas markets,” she said.
She said the Government wanted gas development to translate into greater energy security, industrial investment, employment and government revenue.
The country also wants Tanzanian businesses and communities to participate more meaningfully in the gas value chain, rather than limiting the benefits to extraction and energy production.
For Tanzania, the challenge now is therefore to move beyond being a country with large gas reserves and build the infrastructure, markets and investment environment needed to become a significant participant in the regional and global gas economy.
Ms Makamba said this would enable Tanzania to use its gas resources not only to meet current energy needs but also to build a stronger economic position in the next era of global gas supply.