TPDC, TAQA Arabia and Africa50 Sign Gas Sales Agreement for Tanzania’s First Small-Scale LNG Project

Tanzania Petroleum Development Corporation (TPDC), TAQA Arabia, developing the project through its subsidiary Rosetta Energy Solutions, and Africa50 have signed a Gas Sales Agreement (GSA) for East Africa LNG (EALNG), the venture developing Tanzania’s first small-scale liquefied natural gas (LNG) facility.

The signing ceremony was honoured by the presence of Her Excellency Dr. Samia Suluhu Hassan, President of the United Republic of Tanzania, underscoring the project’s strategic importance to the energy security and industrial development plans of the Government of Tanzania, which is a shareholder of Africa50. ‍

Also in attendance were Alain Ebobissé, CEO of Africa50; Pakinam Kafafi, CEO of TAQA Arabia; Karim Shaaban, Managing Director of TAQA Arabia subsidiary Rosetta Energy Solutions; Adly Kafafi, VP Business Development at TAQA Arabia; Ali Abubakr, COO of TAQA Arabia subsidiary Rosetta Energy Solutions; Amr Aboushadi, Country Manager Tanzania at TAQA Arabia; Kenneth Mutaonga, GM LNG Rosetta Energy Solutions; Nabil Saimi, Senior Investment Director at Africa50; and Reda Souini, Associate Investment Director at Africa50.

‍Through EALNG, the partners intend to invest in, develop and operate the facility for Tanzania’s domestic market, serving industrial, residential and transportation customers, including users beyond the existing gas pipeline network. TPDC will be both gas supplier and an equity partner.

The GSA is a key commercial milestone towards Final Investment Decision, with commercial operations targeted to begin in 2027:

Karim Shaaban, Managing Director of TAQA Arabia subsidiary Rosetta Energy Solutions, said:

“This GSA is an important step towards FID and a key milestone in our scalable LNG growth strategy in Tanzania. We intend to grow capacity as we enable and develop the market, reflecting TAQA Arabia Group’s long-term commitment to Tanzania and its energy future.”

Nabil Saimi, Senior Investment Director Africa50 said:

“Africa has significant gas resources, but unlocking their economic value requires the infrastructure to connect those resources to where energy is needed most. Through our new dedicated midstream gas platform, Africa50 intends to help build that missing link across the continent. This project in Tanzania is an important first step, expanding the productive use of domestic gas while laying the foundation for larger investments that can support industrial growth and economic development”

The facility will liquefy domestic natural gas for distribution by specialized vehicles, extending the reach of locally produced gas and helping replace more costly and carbon-intensive fuels.

The partners will now advance the technical, commercial, environmental, regulatory and financing work required to reach FID and begin construction.