Tanzania is set to develop its first small-scale liquefied natural gas (LNG) facility after TAQA Arabia’s subsidiary Rosetta Energy Solutions, the Tanzania Petroleum Development Corporation (TPDC) and Africa50 signed a Gas Sales Agreement (GSA) for the East Africa LNG (EALNG) project.
The agreement is expected to support the development of the facility, which will process locally produced natural gas into LNG for distribution to customers that are not connected to Tanzania’s existing gas pipeline system.
The project is targeting commercial operations in 2027. Under the planned development, LNG will be delivered by dedicated road transport to industrial, residential and transport customers. The approach is designed to widen access to Tanzania’s domestic gas resources while providing an alternative to fuels that can be more expensive and have higher emissions.
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Boost in gas market
TPDC will supply the natural gas required by the facility and will also hold an equity interest in the project. Its participation gives the state-owned energy company a direct role in both the supply and development sides of the venture. For TAQA Arabia, the agreement represents a significant milestone as the EALNG project moves toward a final investment decision. Rosetta Energy Solutions Managing Director Karim Shaaban said the company intends to expand LNG capacity as demand develops, highlighting the potential for the project to grow alongside Tanzania’s gas market.
TAQA Arabia CEO Pakinam Kafafi said the development would help transform Tanzania’s natural gas reserves into a reliable source of energy for businesses, households and the transport sector. Increased domestic gas use could also contribute to improved energy security and support the country’s industrialisation efforts.
The project forms part of TAQA Arabia’s broader interest in Tanzania’s energy sector. In September 2025, the company’s board considered potential LNG investments in the country, alongside developments linked to the Zafarana solar project in Egypt. Africa50 said the project could help address a key infrastructure gap by connecting Tanzania’s gas resources with customers outside the reach of existing pipelines.
The investment platform also views the development as an initial step toward larger gas and energy infrastructure projects that could support industrial expansion and economic growth. With the GSA now in place, the partners are working toward the next stages of project development and investment approval, with the planned 2027 start-up positioning EALNG as a potential new channel for expanding Tanzania’s domestic natural gas market.
