Tanzania Sees 25.7% Drop in Natural Gas Output as Hydropower Production Increases
Tanzania's natural gas output decreased by 25.7% to 61,495.6 million standard cubic feet for the year ending June 2025, primarily due to reduced gas consumption for power generation following the launch of the Julius Nyerere Hydropower Project. Despite this decline, revenue from the gas sector surged by 161%, rising from $55.1 million in 2020 to $144.1 million in 2024, as the country shifts towards hydropower and explores new gas markets.
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Natural gas production in Tanzania fell by 25.7% to 61,495.6 million standard cubic feet (MMSCF) and consumption decreased by 25.5% to 59,822.0 MMSCF for the year ending June 2025, according to the Bank of Tanzania. The decline is attributed to reduced gas use for power generation following the commissioning of the Julius Nyerere Hydropower Project, which increased electricity supply.
Power plants accounted for 75.2% of gas consumption, while industrial users represented 23.9%. Domestic electricity generation rose by 19.5% to 12,728.8 Gigawatt hours (GWh). The shift towards hydropower reflects a change in Tanzania's energy mix rather than economic decline.
Despite reduced gas demand, the sector's revenue increased from $55.1 million in 2020 to $144.1 million in 2024, a 161% rise. TPDC is pursuing new gas customers and exploring mini-LNG technologies to expand access.
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