Tanzania moves closer to building $420 million gas-to-liquid plant to produce jet fuel and diesel locally

Dar es Salaam. Tanzania is edging closer to launching one of its most transformative energy projects - the construction of a gas-to-liquid (GTL) plant capable of producing diesel, jet fuel, and other petroleum products locally.

This follows the completion of a feasibility study by Rocky Mountain GTL, a Canadian technology company renowned for its patented process that converts natural gas into clean liquid fuels faster and more cost-effectively than conventional refineries.

The company confirmed that completion of the study marks a major milestone in a $420 million investment plan that could position Tanzania as Africa’s first exporter of synthetic jet fuel and diesel.

In March, representatives of Rocky Mountain GTL visited Tanzania and met with government officials to discuss investment opportunities.

The company’s local partner, Rithi Tanzania Group Ltd, after that meeting said the high-level meetings resulted in an agreement to share detailed information.

“They have agreed to share detailed information regarding the market and gas resources now and in the future, as well as conduct a feasibility study that will lead to the construction of the plant,” RTG country representatives Martin Kaswahili, Jack Pemba, and Hassan Nganzo told The Citizen then.

“Once the project is up and running, Rocky Mountain GTL’s technology will supply Tanzania with diesel and jet fuel and will also be able to produce naphtha,” they added.

The Tanzanian government reportedly sent a high-level team to conduct due diligence on the company's capacity and to understand the patented technology that they've built. 

“The technology has brought excitement to the airline industry in Tanzania because of the potential for locally produced jet fuel.  It will give airlines quick access to jet fuel and be more cost effective, making Tanzanian airlines more competitive,” the company said. 

The technology also produces hydrogen as a byproduct of the fuel which will bring huge revenue in the form of foreign currency to the country after exporting to Europe and Asia.  The hydrogen market has unlimited demand.

A Breakthrough in local fuel production

The planned GTL facility, to be built in partnership with the Tanzania Petroleum Development Corporation (TPDC), will convert the country’s vast natural gas reserves into liquid fuels.

Tanzania currently holds an estimated 57.54 trillion cubic feet of natural gas, mostly used for power generation and industrial applications.

According to initial designs, the plant will begin with a capacity of 2,500 barrels per day, producing synthetic diesel, jet fuel, naphtha, hydrogen, and fertilizer.

Rocky Mountain GTL’s modular process allows for expansion and can bring production online within two years—significantly faster than traditional refineries.

The company’s technology has been tested in Alberta, Canada, where its zero-sulphur and biodegradable fuels are already in use, demonstrating environmental advantages that align with Tanzania’s sustainability goals.

Government backing and local investment interest

The Tanzanian government has shown strong interest in the project since signing a memorandum of understanding (MoU) with Rocky Mountain Clean Fuels Inc. in 2024.

 TPDC, which manages the country’s petroleum resources, confirmed then it intended to take up to a 30 percent stake in the project.

“This is a unique and strategic project for Tanzania, and we are convinced of its value,”

said TPDC Director General Mussa Makame after the signing of the MOU.

“If all goes well, we will begin by producing jet fuel locally, eliminating the need for imports.”

During the recent East African Community Petroleum Summit held in Dar es Salaam, Rocky Mountain GTL’s presentation drew strong interest from regional energy investors.

 The firm also held a kick-off orientation meeting with the government, attended by Deputy Prime Minister and Minister for Energy Doto Biteko, to outline the next phase of implementation.

Local financiers are now positioning themselves to participate in the investment, with experts urging that Tanzanian businesses be given first priority in ownership and supply chain participation.

Reducing the fuel import bill

Petroleum imports remain one of Tanzania’s largest expenditure items. According to the Bank of Tanzania, the country spent $2.6 billion on refined white petroleum products last year, accounting for a major share of the trade deficit.

The proposed GTL project is expected to cut fuel import costs by producing a substantial portion of the country’s diesel and jet fuel needs domestically. In the medium term, officials project Tanzania could export surplus fuel to neighbouring countries, strengthening its regional energy influence.

Technology designed for Africa’s future

Rocky Mountain GTL’s proprietary process integrates advanced catalytic conversion that transforms natural gas and natural gas liquids into multiple outputs — diesel, jet fuel, naphtha, hydrogen, and fertilizer — within one modular plant.

Industry experts say this flexibility makes it especially suited for African markets, where smaller-scale, rapidly deployable energy infrastructure is critical. Unlike conventional refineries that require massive capital and long construction timelines, GTL facilities can be built in stages, lowering costs and risks.

The company’s Tanzanian partners, Memnon Africa Group and Rithi Tanzania Group Limited, are coordinating local logistics, regulatory compliance, and community engagement to ensure the project meets environmental and social standards.

For Tanzania, the GTL investment is a tangible step toward energy self-sufficiency, complementing ongoing efforts to develop a large-scale liquefied natural gas (LNG) project for export. It also supports the government’s strategy to diversify natural gas utilisation beyond electricity generation.

If completed on schedule, the plant could start operations by 2027, setting a precedent for cleaner, locally sourced fuels across East Africa.