THE government has signed Head of Terms (HoT) for a joint venture agreement with Egyptian company Rosetta Energy Solutions and Africa 50 to execute mini liquefied natural gas (LNG) project.

The project represents the culmination of efforts in promoting natural gas distribution across the country.

Gracing the in Dar es Salaam at the weekend on behalf of Permanent Secretary of the Ministry of Energy, Energy and Water Utilities Regulatory Authority (Ewura) director general Dr James Mataragio said the project is expected to expand the scope of LNG distribution in the country.

“The mini LNG project is not just a project; it's a revolution in natural gas access in Tanzania set to change this landscape. It's a beacon of hope for reaching more areas than ever before,” he said.

In particular, he said that the project significantly supplements the government's initiative towards providing clean cooking energy.

He directed Tanzania Petroleum Development Corporation (TPDC) to continue to explore the possibility of delivering natural gas to Zanzibar.

He said the presence of the project is a testament to the power of collaboration between the private sector and public institutions.

 “It also underscores the government's credibility and trust in attracting foreign direct investments,” he said.

Dr Mataragio said the investment demonstrates how the government continues to leverage various mechanisms in the international financing system to catalyse investments in the country.

“We invite other state-owned enterprises to our ministry to join us in accelerating project implementation through private-sector collaboration, ensuring a win-win situation that protects the national interest,” he said.

Karim Shaaban, managing director of Rosetta Energy Solutions, said the project plays a critical role in expanding Tanzania's gas pipeline network by enabling scalable demand through movable and modular LNG solutions.

“With a target investment portfolio of more than $100 million, we are strongly focused on transferring our knowledge and expertise to the Tanzanian market and creating multiple jobs throughout the project value chain,” he said.

The agreement signed by TPDC and Rosetta Energy solutions comes a few days after President Samia Suluhu Hassan launched a strategy seeking a smooth and accelerated transition to clean cooking energy.

TPDC director general Mussa Makame said that the mini LNG project is cheaper and takes less time than a pipeline, adding that the project will significantly expedite the delivery of natural gas, ensuring early access for industries, households and vehicles.

“The signing of the HoT will ignite, among other things, the undertaking of the preliminary activities for project implementation including project feasibility study, site selection and initial design planning,” he said.

According to him, so far, only four regions have access to natural gas distribution network in small areas namely Mtwara, Lindi, Coast and Dares Salaam.