SONGWE– Tanzania has taken a step on strategic energy resources following the official launch of the helium production project in Songwe Region. This development places the country among global suppliers of helium, a highly valuable industrial gas.
The agreement was formalized on May 2, 2026, in Songwe through the agreement between the Government of Tanzania and Helium One Global Limited, through Songwe Helium Limited. Under the agreement, the Government of Tanzania will hold a 17 percent equity stake in Songwe Helium Limited.
Helium is widely used across industries because of its unique properties. It is essential in cryogenics for cooling MRI machines and scientific equipment. In aerospace, it is used to pressurize rocket fuel systems, and in manufacturing, it serves as a shielding and leak detection gas. Additionally, helium is used in deep-sea diving mixtures and as a safe, non-flammable lifting gas for balloons and airships.
Global demand and market opportunity
During the signing ceremony, Deputy Minister for Minerals, Dr. Steven Kiruswa, highlighted that global helium supply is currently concentrated in a few countries. The United States and Qatar dominate the market, contributing more than three-quarters of global supply, while other producers include Russia, Algeria, Canada, China, and Poland.
“This is not just a mining project, it is an opportunity for Tanzania to become part of the solution to a global shortage of a gas that has no substitute” He said.
He noted that global demand has already exceeded 6 billion cubic feet annually and is projected to rise beyond 8.5 billion cubic feet by 2030, driven by increasing use in high-technology industries. According to him, Tanzania’s entry into production presents a rare opportunity to participate in a high-value, low-competition market with strong long-term demand.
A Strategic Advantage for Tanzania
The Southern Rukwa helium project, which includes the Songwe block, has shown strong geological potential. This is a future reliable supplier in the global helium supply chain.
Dr. Kiruswa explained that helium extraction will be developed alongside associated gases such as hydrogen, with separate systems to ensure proper resource and revenue management.
The project is expected to generate wide economic benefits, including employment opportunities for Tanzanians, especially youth, growth of local supply businesses, and infrastructure development.
Chairman of the government negotiation committee, Professor Sifuni Mchome said the government will earn dividends, royalties, taxes, and other revenues while also participating in strategic project decisions.
Investment outlook The successful identification of commercially viable helium reduces perceived exploration risk for incoming investors. This milestone is likely to accelerate further geological surveys, infrastructure development, and policy support aimed at unlocking additional mineral and gas opportunities. The government is actively creating a stable and investment-friendly environment, creating strong prospects for long-term benefits and strategic positioning in the evolving global energy sector
