Keypoints:
- $420m gas-to-liquid plant to produce jet fuel
- Project aims to rival Dangote’s refinery dominance
- Hydrogen exports could open new markets for Tanzania
TANZANIA has unveiled an ambitious $420 million synthetic fuel project that could turn the East African nation into one of the continent’s top jet fuel exporters—directly challenging Nigeria’s Dangote Group, which currently dominates Africa’s refined petroleum market.
The project, led by Rithi Tanzania Group in partnership with Canadian clean-fuel firm Rocky Mountain GTL, will create a gas-to-liquid (GTL) plant producing diesel, jet fuel, naphtha, hydrogen, and fertiliser. According to The Citizen newspaper, a recently completed feasibility study confirmed both the economic and technical viability of the venture.
Harnessing Tanzania’s vast gas reserves
With an estimated 57.54 trillion cubic feet of natural gas, Tanzania aims to capitalise on its resources to drive industrialisation and cut fuel imports. The $420 million GTL investment will use local gas feedstock to manufacture cleaner fuels for domestic consumption and export.
Rocky Mountain GTL representatives said the company is now sharing detailed data with the Tanzanian government on gas resources and market conditions to prepare for construction. ‘They have agreed to conduct a full feasibility study that will lead to the plant’s construction,’ Rithi Tanzania Group executives Martin Kaswahili, Jack Pemba, and Hassan Nganzo told The Citizen.
Once operational, the plant is expected to supply Tanzanian airlines with locally produced jet fuel—reducing import dependency and lowering air transport costs across East Africa.
A new front in Africa’s jet fuel trade
The project marks Tanzania’s entry into a market long dominated by Dangote’s 650,000-barrel-per-day refinery in Nigeria—the largest single-train facility in the world. Dangote’s refinery recently began exporting aviation kerosene to African carriers, tightening its grip on regional pricing and logistics.
But analysts say Tanzania’s synthetic-fuel venture could shift that balance. By producing jet fuel closer to key East African markets, the GTL plant offers a new supply route for airlines in Kenya, Uganda, Rwanda, Burundi, and the Democratic Republic of Congo—potentially cutting costs and transit times.
‘It will give airlines quick access to jet fuel and be more cost effective, making Tanzanian airlines more competitive,’ Rocky Mountain GTL said in a statement.
Hydrogen and fertiliser exports in the mix
Beyond aviation fuel, the project includes hydrogen production for export to Europe and Asia, where demand for clean energy is surging. ‘The hydrogen market has unlimited potential,’ the company noted, highlighting Tanzania’s opportunity to tap into a growing global market.
Fertiliser output is also expected to boost Tanzania’s agricultural sector, reducing reliance on imports and stabilising domestic supply.
Boosting industrialisation and local investment
Tanzania Petroleum Development Corporation Director General Mussa Makame said the investment aligns with national industrialisation goals. ‘This is a unique and strategic project for Tanzania, and we are convinced of its value,’ he said. ‘If all goes well, we will begin by producing jet fuel locally, eliminating the need for imports.’
The government has already dispatched a high-level due diligence team to review the technology and prepare for rollout. The modular GTL design allows for faster construction—potentially becoming operational by 2027, far ahead of the five-to-seven-year timeframe typical of large-scale refineries.
Petroleum imports cost Tanzania $2.6bn in 2024, according to the Bank of Tanzania. With the new plant, local financiers are lobbying for majority participation to ensure domestic ownership of profits and long-term economic gains.
If realised, the GTL project could turn Tanzania into a major energy hub in East Africa, breaking Nigeria’s monopoly and establishing a new epicentre in the continent’s jet fuel trade.
