Alistair Naiken, CEO of Dubai-based Energetech, revealed the signing of the MoU in a social media post on Thursday.
He said this $100 million project will unlock access to “cleaner, more affordable energy for the region, connecting Tanzania’s abundant gas reserves to inland and off-grid industrial users across East and Southern Africa.”
“This is just the beginning – we believe scalable, modular LNG solutions will be key to transforming the energy landscape for fast-growing economies,” Naiken said.
He did not provide further details.
TPDC also announced the signing of the contract in a separate statement on Thursday.
The initial production is estimated to be about 20–30 mmscf/day, with plans to boost it to 100 mmscf/day as demand grows.
Under the terms of the contract, Enertech-Tantel will lead the financing, engineering, and supply of LNG, aiming to deliver the supplies where it is needed most.
According to Energetech Tantel’s website, the company is a strategic joint venture between Energetech and Tanzania-based Tantel Holdings.
The JV is developing Tanzania’s first modular LNG facility in Mtwara, which will be supplied via the national TPDC pipeline.
Moreover, the facility will produce LNG for local and regional distribution, targeting industrial users currently dependent on diesel.
LNG will be distributed via containerized road transport, forming a “virtual pipeline” to off-grid locations across Tanzania, Rwanda, Uganda, the DRC, and beyond.
“The project supports Tanzania’s ambition to become a regional energy hub and reflects a shared commitment to accelerating energy access, reducing emissions, and supporting industrial growth across East and Central Africa,” Energetech Tantel said.
Tanzania LNG
TPDC is also a partner in the giant Tanzania LNG export project, led by Shell and Equinor, which has been in development for years.
Equinor and Shell are both operators of large gas discoveries off the country’s coast.
The capacity of the planned LNG export facility in Lindi is expected to be at least 10 million tonnes per year.
