Dar es Salaam — Tanzania is taking a major step toward energy independence as the government, through the Ministry of Energy, moves closer to establishing a $420 million Gas-to-Liquid (GTL) plant, which will produce locally refined jet fuel and diesel from the country’s vast natural gas reserves.
The project, to be implemented in partnership with Rocky Mountain Clean Fuels Inc., a Canadian-based energy company, aims to transform Tanzania’s natural gas into high-quality, low-emission liquid fuels — reducing the country’s reliance on imported petroleum products while adding significant value to domestic gas resources.
Speaking in Dar es Salaam after a meeting with representatives of the company, Deputy Prime Minister and Minister for Energy Doto Biteko said the feasibility study for the project has been completed and shows strong potential for commercial viability.
“The study confirms that Tanzania has both the gas capacity and market demand to support a large-scale gas-to-liquid plant,” Dr. Biteko said. “This investment will help us achieve energy self-sufficiency, create jobs, and strengthen our position as a key player in the regional energy market.”
The planned GTL facility — the first of its kind in East Africa — will convert natural gas into cleaner liquid fuels such as diesel, kerosene, and aviation fuel, using advanced catalytic conversion technology.
The process produces lower emissions compared to conventional petroleum refining, aligning with global efforts to promote cleaner energy production.
According to officials familiar with the project, the plant is expected to produce up to 20,000 barrels of synthetic fuels per day, meeting a substantial portion of Tanzania’s local demand while supporting export opportunities within the East African Community (EAC) and Southern African Development Community (SADC) regions.
Dr. Biteko said the initiative forms part of the government’s broader strategy to industrialize the energy sector, attract foreign investment, and enhance national energy security.
“Our goal is to ensure that Tanzanians benefit directly from the country’s natural resources,” he emphasized. “The GTL project will not only stabilize fuel prices but also stimulate downstream industries and create skilled employment for young professionals.”
The project is also expected to reduce the carbon footprint associated with fuel imports and maritime transportation. Experts believe it could help Tanzania position itself as a model for sustainable energy transition in sub-Saharan Africa.
Energy analyst Dr. Paul Mhando noted that the development aligns with Tanzania’s commitment to low-carbon growth and green industrialization.
“The GTL plant will demonstrate how natural gas can be leveraged responsibly to meet domestic needs while minimizing environmental impact,” Dr. Mhando explained. “It’s a smart balance between economic growth and sustainability.”
The Canadian investors are working closely with Tanzania’s Petroleum Development Corporation (TPDC) and the Energy and Water Utilities Regulatory Authority (Ewura) to finalize the investment framework. Construction is expected to begin in mid-2026, pending final approval of environmental and financing plans.
The government has pledged continued support to ensure the project proceeds smoothly, noting that it will complement other ongoing gas infrastructure projects such as the Liquefied Natural Gas (LNG) terminal in Lindi and the expansion of domestic gas distribution networks.
“We are building a stronger, more resilient energy future,” Dr. Biteko said. “This project will not only meet domestic needs but also strengthen Tanzania’s energy export capacity.”
Tanzania currently imports most of its refined petroleum products, spending billions of shillings annually on fuel imports. With proven natural gas reserves of more than 57 trillion cubic feet, the government has prioritized projects that can process gas domestically to meet industrial and transport needs.
If successful, the GTL plant will mark a transformative milestone for Tanzania’s energy sector — reducing import dependency, creating high-value jobs, and propelling the nation closer to becoming an energy hub for East Africa.
