Energetech Tantel and TPDC Partner to Launch Tanzania’s First Small-Scale LNG Facility by 2026

Energetech Tantel (ET), a partnership between UAE-based energy trading and infrastructure firm Energetech and Tanzanian investment firm Tantel Holdings, has signed a landmark Memorandum of Understanding (MoU) with the Tanzania Petroleum Development Corporation (TPDC) to develop a modular liquefied natural gas (LNG) production facility. The project, representing an investment of up to $100 million, is targeted to begin operations by 2026, significantly advancing Tanzania’s clean-energy infrastructure ambitions.

Initially, the facility will liquefy between 20 and 30 million standard cubic feet per day (mmscf/day) of natural gas. Its modular technology enables rapid scalability, with potential expansion up to 120 mmscf/day as regional energy demand accelerates. The LNG produced will be distributed via a containerized road transportation system – a “virtual pipeline”, providing swift, reliable energy to industrial and commercial customers beyond existing pipeline infrastructure, many of whom currently rely on expensive and polluting diesel generators.

East Africa has historically faced considerable challenges due to limited energy infrastructure, forcing industries to depend on imported fuels and diesel generation. This reliance inflates energy costs, impedes economic growth, and increases carbon emissions. Small-scale LNG projects like Energetech Tantel’s facility are increasingly recognized globally as efficient solutions to bridge infrastructure gaps, enabling rapid deployment of clean, economical energy.

Energetech Tantel intends to establish Tanzania as a central hub for LNG storage and distribution in East and Central Africa, significantly enhancing energy affordability, security, and environmental sustainability across the region.

Mussa Makame, CEO of TPDC, stated:
“This partnership with Energetech Tantel marks a significant milestone in enhancing Tanzania’s energy infrastructure and driving tangible economic growth. The development of this modular LNG facility will substantially lower energy costs, stimulate industrial competitiveness, and create new investment and employment opportunities domestically. Moreover, by positioning Tanzania as a key exporter of clean energy to East and Central Africa, the project will amplify our nation’s regional influence and contribute meaningfully to broader sustainability and economic integration objectives.”

A core strategic benefit of the facility’s LNG output will be supporting regional power generation markets. Industries across Tanzania and neighboring countries currently face high operational costs due to diesel-generated power. By offering reliable, competitively priced LNG fuel, Energetech Tantel will empower regional power producers leveraging Energetech’s broader commercial expertise, to secure stable, long-term Power Purchase Agreements (PPAs), providing affordable and sustainable energy solutions.

Alistair Naiken, CEO of Energetech Tantel, emphasized the project’s strategic significance:
“Our collaboration with TPDC is a critical step toward reshaping the regional energy landscape. By rapidly deploying modular LNG infrastructure, we are committed to significantly reducing energy costs and carbon emissions, stimulating economic growth, and reinforcing energy security throughout the region. This facility represents a foundational investment in sustainable development and regional integration.”

In addition to supplying industrial power generation, Energetech Tantel is actively exploring future market opportunities such as LNG bunkering for marine vessels and LNG fuel-switching for heavy transportation fleets. These sectors promise substantial environmental and economic benefits, aligning closely with global decarbonization efforts.

Moshe Schlisser, Chairman at Energetech Tantel, said: “This partnership offers a unique opportunity to invest in high-impact infrastructure in one of Africa’s most promising markets. With strong local collaboration and government backing, we aim to empower industries lacking consistent, affordable power and establish Tanzania as a regional hub for LNG storage and distribution, driving energy access and long-term sustainability across East and Central Africa. We’ve already played a role in several major initiatives across Tanzania, and we see this as a chance to deliver something truly transformative, setting a new benchmark for innovation, resilience, and lasting value.”

Regional market forecasts indicate rapidly growing energy demand driven by industrial expansion, mining activities, and infrastructure development. According to the International Energy Agency (IEA), sub-Saharan Africa’s natural gas consumption is expected to nearly double by 2040, driven largely by the power sector and industrial growth. Small-scale LNG infrastructure like this facility directly addresses this demand, supporting economic expansion while achieving significant reductions in regional carbon footprints.

Daniel Gabai, Managing Director at Energetech Tantel, explains: “What sets this initiative apart is its ability to deliver reliable, cleaner energy to industries currently underserved by traditional infrastructure. The modular design and virtual pipeline distribution model allow for fast deployment, flexibility, and measurable impact on both emissions and operating costs for industries across Tanzania and beyond. Our goal is to build a scalable, future-proof energy solution that will lay the groundwork for a low-carbon energy ecosystem across East Africa. “

About Energetech
Energetech, headquartered in Dubai, UAE, is an innovative energy trading and infrastructure firm founded by Alistair Naiken, previously a trader at global commodities leader Vitol. Energetech specializes in natural gas, LNG, refined products, power generation, bitumen, petrochemicals, and waste-to-energy solutions. Leveraging extensive commercial expertise and agile execution capabilities, Energetech rapidly delivers tailored energy infrastructure solutions, particularly within frontier and emerging markets.

About Tantel Holdings
Established in 2017, Tantel Holdings is a prominent East African investment firm backed by a leading family office. The firm actively invests across Energy, Metals, Healthcare, and Frontier Technologies, combining disciplined investment strategies with strong operational expertise. Tantel maintains a deep operational presence in Tanzania and the broader region, dedicated to driving sustainable economic growth through impactful investments.

Next Steps and Timeline
Following the MoU signing, Energetech Tantel and TPDC will swiftly proceed with detailed technical assessments and commercial structuring, targeting financial closure within the coming months. Construction of the initial modular LNG production facility is scheduled to commence shortly thereafter, with full operational capacity planned for 2026.