Tanzania is advancing plans for a $420 million gas-to-liquid (GTL) plant that could mark a watershed moment for the region’s energy sector. The facility is designed to convert the country’s substantial natural-gas reserves into diesel, jet fuel, naphtha, hydrogen and fertilizer, positioning Tanzania as a potential exporter of aviation fuel and challenging long-established players on the continent.
The Project in Focus
The new plant, to be developed in collaboration between the Canadian clean-fuel technology firm Rocky Mountain GTL and local partners such as Rithi Tanzania Group Ltd and Tanzania Petroleum Development Corporation (TPDC), centres on a modular GTL process that can be deployed more rapidly than traditional refineries. It would harness Tanzania’s estimated 57.5 trillion cubic feet of natural gas reserves as a feedstock.
According to reports, Rocky Mountain GTL has completed a feasibility study validating the technical and economic viability of the project. Discussions with the Tanzanian government, including due-diligence reviews, are underway.
The initial target capacity is modest, around 2,500 barrels per day of output, but the intent is to scale up regionally, enabling Tanzania to serve markets across East Africa and beyond.
A Strategic Confrontation with Dangote’s Legacy
The timing of this initiative is significant. While Tanzania seeks to build a new energy-supply hub, Nigeria’s Dangote Refinery already dominates refined-product exports from Africa. The Dangote facility, one of the world’s largest single-train refineries, has begun exporting aviation fuel, diesel and other refined products to Africa, Asia and Europe.
By aiming to produce jet fuel locally and export regionally, Tanzania hopes to decrease its dependence on imported refined petroleum products, reducing import bills, enhancing energy security and tapping into aviation-fuel markets that have been largely supplied from West Africa.
Economic Promise and Strategic Gains
Tanzania’s $420 million synthetic-fuel project could bring sweeping economic benefits to the country and the wider East African region. By producing diesel and jet fuel domestically, the country stands to cut its $2.6 billion annual petroleum import bill, keeping more money in the local economy.
Local jet fuel production could also lower operating costs for regional airlines, improving their competitiveness in an industry long constrained by high fuel prices. In addition, exporting hydrogen, a by-product of the gas-to-liquid (GTL) process, to markets in Europe or Asia could open a lucrative new revenue stream.
The project’s modular GTL design gives it another advantage: speed. Unlike traditional refineries that can take up to seven years to build, this facility could be operational within just two. That accelerated timeline could make Tanzania one of the first East African nations to commercially produce synthetic jet fuel.
Risks and Realities
Despite its promise, the project faces significant challenges. Reliable gas-supply contracts and strong infrastructure are critical to sustaining production. Any disruption in feedstock or logistics could quickly raise costs and delay operations.
There are also technological and market risks. Gas-to-liquid conversion is highly capital intensive, and Tanzania must ensure the chosen process delivers consistent quality at competitive prices. Meeting global aviation-fuel standards and securing export markets will be essential if the country hopes to rival established suppliers like Nigeria.
Ultimately, Tanzania’s synthetic-fuel plan offers a bold vision, but success will depend on execution. If it meets its targets, the project could redefine the region’s energy balance; if not, it risks joining a long list of ambitious industrial dreams that fell short of their potential.
If all goes to plan, the Tanzanian plant may begin operations by 2027, positioning the country as a new player in Africa’s aviation-fuel and refined-product trade. The next milestones to watch include finalising the project financing, finalising supply-chain agreements and moving into construction.
