Tanzania LNG: Unlocking future growth across energy and industry
4 min read
Tanzania’s energy and chemicals segment is projected to show tremendous growth in the next five years, forming part of the country’s ambitious Fourth Five-Year Development Plan (FYDP IV (2026/27 to 2030/31).
The plan envisions transforming Tanzania from a nation with significant energy deficits into a regional power hub with 15 000MW of installed capacity by 2031, universal household connectivity by 2050, and a green-industrial revolution underpinned by hydro, solar, wind, geothermal and gas resources.
Within the above context, liquefied natural gas (LNG) will play a vital role; Tanzania has an estimated 57 trillion cubic feet of proven reserves, positioning gas as a robust product for both export as well as well as broader industrialisation and economic development.
Strategic ambition
Currently, Tanzania’s non-power gas utilisation is limited. Production supports a small compressed natural gas transport sector and emerging distribution networks, while household cooking remains dominated by biomass and liquefied petroleum gas.
However, gas is already central to electricity generation (57% of supply), and industrial-scale usage is set to expand with pipeline capacity doubling by 2031. This leap will come with the projected $42-billion Lindi LNG project, positioning Tanzania as both a domestic enabler and global exporter.
It is also this development of LNG infrastructure that is expected to trigger a ripple effect across Tanzania’s economy.
Indeed, while large-scale LNG export projects typically take seven to 10 years to fully materialise, the signalling effect to global investors begins much earlier.
As soon as early-stage progress becomes visible, investment tends to follow, into power generation, manufacturing facilities, logistics and supporting infrastructure. New thermal power stations, particularly in the south of the country, are already being considered, with gas as a primary fuel source.
A decade of (technology) opportunity
Over the next 10 years, Tanzania is widely expected to emerge as one of Africa’s fastest growing energy and industrial markets. But as the country’s transformation begins, so too will the energy and chemicals segment become more complex.
The reality is that delivering reliable, efficient and scalable systems across power generation, transmission, industrial operations and infrastructure will require a high degree of integration.
This is where technology partners can play an important play a critical role, enabling system-wide efficiency and resilience.
Across the LNG value chain and adjacent sectors, the need spans electrification, automation and energy management. This includes power and controlling generation assets, optimising industrial processes and ensuring stability across port and logistics infrastructure.
In the Middle East, Schneider Electric partnered with LNG operators to decarbonise operations and boost efficiency. Through its EcoStruxure for LNG open-architecture IoT solution, Schneider Electric delivered predictive maintenance, real-time monitoring and AI-driven controls.
This allowed operators to reduce carbon footprints while maintaining reliability, turning sustainability into a performance driver.
Schneider Electric can assist Tanzania’s burgeoning LNG industry with, among others:
- Process automation and control – platforms for safe, efficient LNG plant operations.
- Advanced distributed control systems to optimise liquefaction, storage and re-gasification.
- Electrical distribution and reliability – low-voltage and medium-voltage solutions to ensure reliable power; embedded thermal monitoring and predictive maintenance to reduce downtime.
- Secure power and data centres – AI-driven data centre solutions to manage LNG’s digital backbone, from SCADA (Supervisory Control and Data Acquisition) systems to real-time monitoring; also, uninterruptible power supplies and secure power systems to protect mission-critical operations against outages.
- Digital twin and simulation – enabling predictive analytics and scenario planning.
Tanzania is no doubt on the cusp of a historic LNG expansion, and with it will follow infrastructure development, electrification and long-term economic resilience, enabled in part by sound technology systems.
Ahmed Mohamed Ahmed Hegazy
Business Development Leader: Energy and Chemicals
