TPDC, TAQA Arabia, Africa50 sign deal for Tanzania’s first small-scale LNG facility
Tanzania Petroleum Development Corporation and its partners have signed a gas sales agreement to develop the country's first small-scale LNG facility. The project aims to supply domestic industrial and residential markets by 2027.
Why it matters
This infrastructure project is a critical step in utilizing domestic natural gas to support industrial growth and reduce reliance on more carbon-intensive fuels in Tanzania.
Tanzania Petroleum Development Corporation (TPDC), TAQA Arabia, through its subsidiary Rosetta Energy Solutions, and Africa50 have signed a gas sales agreement (GSA) for the East Africa LNG (EALNG) project, according to an emailed press release.
The deal aims to develop Tanzania’s first small-scale liquefied natural gas (LNG) facility, with commercial operations targeted to commence in 2027.
Through EALNG, the companies plan to finance, develop, and operate the facility to supply Tanzania’s domestic market, serving industrial, residential, and transportation customers, including consumers located beyond the reach of the country’s existing gas pipeline network.
Under the agreement, TPDC will serve as both the project’s natural gas supplier and an equity partner.
The joint venture (JV) will liquefy domestic natural gas for distribution by specialized vehicles, expanding access to locally produced gas while supporting the replacement of more expensive and carbon-intensive fuels.
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