Tanzania has announced an ambitious $420 million gas-to-liquid plant that could reshape Africa’s fuel landscape and pose a direct challenge to Nigeria’s Dangote Group, currently the continent’s leading refined fuel producer. The transformative project aims to position Tanzania as Africa’s first exporter of synthetic jet fuel and diesel, leveraging the nation’s massive 57.54 trillion cubic feet of natural gas reserves.
The initiative reached a critical milestone after Rocky Mountain GTL, a Canadian clean-fuel technology company, completed a feasibility study confirming the project’s economic and technical viability. The plant will produce diesel, jet fuel, naphtha, hydrogen, and fertilizer, marking one of Tanzania’s most significant industrial undertakings to date.
Executives from Rithi Tanzania Group, including Martin Kaswahili, Jack Pemba, and Hassan Nganzo, told The Citizen that collaboration with the Tanzanian government is progressing rapidly. The government has agreed to share detailed information about market prospects and gas resources, paving the way for full-scale construction.
Tanzania Petroleum Development Corporation Director General Mussa Makame described the project as a strategic cornerstone of the nation’s industrialization agenda. The GTL plant’s modular design could enable commissioning within two years, significantly faster than conventional refineries that typically require five to seven years to complete. If operational by 2027, the facility could transform Tanzania into a regional fuel exporter, with surplus production exported to Kenya, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo.
The development comes as petroleum imports cost Tanzania $2.6 billion last year, underscoring the urgency of securing domestic alternatives. The new facility is expected to lower fuel costs for airlines, improve logistics, and provide Tanzanian carriers with quick and affordable access to jet fuel. Additionally, the project positions Tanzania to export hydrogen to Europe and Asia, opening lucrative opportunities in the global clean energy market.
Source: angolanminingoilandgas.com