Tanzania-focused oil and gas exploration and development (E&D) firm Aminex and the operator of the Ntorya gas project, ARA Petroleum Tanzania Limited (APT), have received the development licence at a formal handover ceremony in Mtwara on September 10.

The licence for a period of 25 years was handed over to the joint venture (JV) by the Deputy Prime Minister and Minister for Energy of Tanzania Doto Mashaka Biteko.

Over 1,000 attendees, including local and regional dignitaries and Members of Parliament, gathered for a ceremony where Biteko shared the government’s future vision. He announced that the pipeline from Ntorya to Madimba is expected to be completed within six months, facilitating gas delivery for electricity production.

The deputy prime minister credited President Samia Suluhu Hassan for driving the gas exploitation initiative and highlighted that, under her government, substantial gas extraction would occur for the first time. The licence handover underscores the government's commitment to ensuring that natural gas benefits the citizens and enhances electricity availability in the Mtwara region.

The event marked a key milestone in the government’s efforts to deliver energy and economic benefits to both the region and the country, Aminex said in a press statement.

Work at the Ntorya site has progressed in recent months, with APT securing land for upstream processing facilities and the Chikumbi-1 well, while expanding a nearby site for a camp and storage yard.

Aminex says it is preparing logistics for the subsurface work to begin gas production. This includes testing and converting Ntorya-2 into a producing well, drilling and converting Chikumbi-1 well, and conducting a workover at Ntorya-1 for production. First gas is expected once the pipeline is completed next year.

Under a Gas Sales Agreement (GSA) with the Tanzania Petroleum Development Corporation, APT plans to produce 40mn-60mn cubic feet (mmcf), or 1.1-1.7mn cubic metres (mcm) of gas per day, in the first year, increasing to 140mmcf (3.96mcm) of gas per day in a few years. This will boost Tanzania’s gas production by 20-80%, according to Aminex.

Having completed a comprehensive 3D seismic survey across the broader licence area, the JV partners see the possibility of producing significantly larger volumes of gas from Ntorya. Realising this potential will require a phased development of the Ntorya gas field and the growth of domestic gas off-takers, such as fertiliser, cement, and plastics manufacturing, vehicle CNG stations, local LPG suppliers, and additional gas-fired power plants for both industrial and residential use.

“We were honoured to be invited to this ceremony celebrating the handover of the Ntorya Development Licence from the Ministry of Energy. This ceremony demonstrates the firm commitment of the Government of Tanzania to utilise Ntorya’s resources to help eliminate energy poverty, spur growth and improve living standards in the country,” said Charles Santos, executive chairman of Aminex.

“We are proud as a founding partner in Ntorya to support ARA Petroleum and the Tanzanian authorities in this crucial effort. Although this development licence is the beginning of our efforts, we are very excited about the further potential of Ntorya to bring significant economic benefits to Tanzania and the region,” he added.