Maurel & Prom is set to start drilling three new natural gas wells at the Mnazi Bay gas field in Tanzania in June 2025, continuing through 2026. Two wells (MB5 and MS2) are production (infill) wells, and one (Kasa) is an exploration well
This drilling campaign follows an $80 million investment announced in October 2024 and aims to increase gas production capacity by 30 million cubic feet per day, raising total output to 130 MMcf/d from the current 100 MMcf/d.
The Mnazi Bay gas field production has seen fluctuations over recent years.In 17, April 2025 company’s activity update explain that M&P’s share of gas production was 60.8 cubic feet per day. This production is 5% higher than what they produced in the previous quarter(Q4 2024)
Growth in Natural Gas for Industry.
Demand for natural gas in Tanzania has grown steadily,averaging 8-10% per annum over the last 14 years. Whilst there are many know drivers of future demand, some observers of the market might have expected a temporary lull in demand as the Julius Neyere hydropower dam has been commissioned.
It reported on January 30 2025 that demand for gas at Mnazi Bay was ”up 19% compared to 2023” and “gas nominations by TPDC rose significantly during the fourth quarter, with production of 58.2 mmcfd for the M&P share
This highlights the trend increase in gas demand in Tanzania, despite the rise in hydropower generation in the country.
Read also:Ntorya Gas Field: Tanzania’s Next Oil & Gas ‘Mega Project’
Where is the Additional Gas Coming From?
If LNG projects face delays in reaching final investment decisions and Ntorya field does not come online as expected , existing fields like Mnazi Bay will become even more critical to meet both short- and long-term demand, especially for power generation and industrial use. Including notable examples such as the new fertilizer plant in the Lindi region that will demand 70 million cubic feet of natural gas per year, with deliveries expected to start in 2027.
Tanzania Petroleum will continue to monitor developments in this space and will provide further coverage and insights.
