By Business Insider Reporter
Tanzania’s energy sector is poised for significant growth as construction begins this month on a 35-kilometre gas pipeline linking the Ntorya gas field in southern Tanzania to the Madimba gas processing plant, marking a major milestone in the country’s push toward energy self-sufficiency and industrialisation.
The project is being spearheaded by Oman-based Ara Petroleum, which recently secured final government approval to develop the 3.5 trillion cubic feet (tcf) Ntorya gas field – one of Tanzania’s most promising onshore reserves. Chinese contractors have signed on to build the 14-inch-diameter pipeline, which will transport gas from the Ntorya-2 well to TPDC’s Madimba facility with a processing capacity of 210 million cubic feet per day.
The development has already had ripple effects in international markets.
UK-listed junior Aminex, a minority partner in the Ntorya licence, saw its share price hit a 14-month high following the announcement – an indication of renewed investor confidence in Tanzania’s gas economy.
Beyond market movements, the pipeline represents a strategic infrastructure asset for Tanzania.
It will significantly expand the country’s domestic gas distribution capacity, enhance energy access for industrial and commercial users, and reduce dependency on imported fuels.
The project is also expected to generate hundreds of direct and indirect jobs during construction and operation, particularly in the Mtwara and Lindi regions, and spur the development of gas-based industries including power generation, fertiliser production, and petrochemicals.
According to energy analysts, the Ntorya pipeline complements Tanzania’s long-term ambitions under its Natural Gas Utilization Master Plan and aligns with the government’s goal of becoming a regional energy hub for East and Southern Africa.
With construction now imminent and financing secured, Tanzania is well-positioned to unlock new revenues, attract additional upstream investment, and accelerate industrial transformation powered by domestic energy resources. This development comes as the country also sees major renewable energy investments, such as the African Development Bank and SEFA’s recent $40 million equity injection into Project Zafiri, a decentralized energy platform with potential for off-grid electrification in rural Tanzania. Together, these projects reflect Tanzania’s multi-pronged strategy for building a resilient, inclusive, and diversified energy future.
