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Natural gas

Tanzania's TPDC to Invest 120bn/- in Gas Pipeline Construction

Strategic Insights

— 2 min read

The Tanzania Petroleum Development Corporation (TPDC) is set to invest a significant amount in constructing a 34-kilometre natural gas pipeline to connect the Ntorya gas field to the Madimba Gas Processing Plant in Mtwara. This project is part of the government's strategy to expand access to natural gas and accelerate the transition to cleaner energy sources. The pipeline will support growing national energy demands and align with government efforts to reduce energy poverty. In a related development, private energy company ARA Petroleum is preparing to drill a new gas well in the Ntorya area and work over two existing wells.

Key Takeaways:

  • The TPDC will invest 120bn/- in constructing a 34-kilometre natural gas pipeline connecting the Ntorya gas field to the Madimba Gas Processing Plant in Mtwara.
  • The project is part of Tanzania's broader strategy to expand access to natural gas and accelerate the transition to cleaner energy sources.
  • The pipeline is expected to support growing national energy demands and align with government efforts to reduce energy poverty.
  • TPDC has issued a restricted tender for the engineering, procurement, and construction (EPC) contract, awarding the contract to two Chinese companies, China Petroleum Pipeline and China Petroleum Technology & Development Corporation, in July 2025.
  • The project will involve transporting gas from the Ntorya field to the Madimba plant via the new pipeline, with ARA Petroleum preparing to drill a new gas well and work over two existing wells.
  • Gas from these sources will be transported to the Madimba plant via the new pipeline, with TPDC overseeing pipeline infrastructure to ensure uninterrupted gas delivery to the processing facility.
  • Tests will be conducted on the Ntorya-2 well to assess whether the gas can be processed directly at Madimba or if a preliminary treatment station is required.
  • Construction of the pipeline is expected to be completed within eight months, with first gas flow projected by mid-2026.

Statistics:

  • 120bn/-: The amount invested by TPDC in constructing the 34-kilometre natural gas pipeline.
  • 25%: The non-operating interest held by British-listed firm Aminex in the project.
  • 490m/-: The amount disbursed by TPDC in compensation to 255 individuals affected by the pipeline route.
  • October 2024: The month in which TPDC issued a restricted tender for the EPC contract.
  • July 2025: The month in which contracts were officially awarded to China Petroleum Pipeline and China Petroleum Technology & Development Corporation.

Sources:

  • Daily News, July 11 - THE Tanzania Petroleum Development Corporation (TPDC) is set to invest 120bn/- in constructing a 34-kilometre natural gas pipeline connecting the Ntorya gas field to the Madimba Gas Processing Plant in Mtwara.
  • Daily News, ALSO READ: TPDC cuts over 100,000 tonnes of carbon emissions
  • Daily News, ALSO READ: TPDC, Energetech ink gas transport deal

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