By Mutayoba Arbogast
Across the quiet plains of southwestern Tanzania, a discovery is positioning the country at the center of a critical shift in the global gas market.
Beneath the earth in the Songwe Region lies helium—an invisible but indispensable element that powers some of the world’s most advanced technologies, from MRI scanners and semiconductor manufacturing to space exploration and quantum computing. Now, Tanzania is moving to turn that buried potential into geopolitical and economic leverage.
On May 2, 2026, the government formalized its entry into the global helium market, signing a landmark Gas Extraction Agreement with Helium One Global Limited through the Songwe Helium Limited Partnership. The deal marks the transition from exploration to development—and signals Tanzania’s ambition to become a strategic supplier in a market defined by scarcity and concentration.
For decades, helium production has been dominated by a handful of countries. The United States and Qatar account for more than three-quarters of global supply, with smaller contributions from Russia, Algeria, Canada, China, and Poland. Yet demand continues to surge, driven by expanding use in healthcare, electronics, and high-tech manufacturing. Global consumption already exceeds 6 billion cubic feet annually and is projected to surpass 8.5 billion cubic feet by 2030.
The result is a widening supply gap—and a growing urgency to diversify sources.
“This is not just a mining project,” said Tanzania’s Deputy Minister of Mines, Dr. Steven Kiruswa, describing the Songwe development as a strategic entry point into a high-value, low-competition market. “It is an opportunity for Tanzania to become part of the solution to a global shortage of a gas that has no substitute.”
Unlike most commodities, helium cannot be synthetically produced at scale. Its unique properties—non-reactive, ultra-light, and possessing the lowest boiling point of any element—make it essential for cooling superconducting magnets used in medical imaging and scientific research. That irreplaceability has elevated helium from an industrial input to a strategic resource.
Tanzania’s bet on helium is underpinned by both geology and policy. The government has committed more than $60 million to secure a 17 percent stake in the project, ensuring participation not just as a host nation but as a shareholder with influence over production, revenues, and long-term strategy.
The approach reflects the broader resource governance agenda of President Samia Suluhu Hassan, which emphasizes domestic value capture and equitable participation in extractive industries.
Years of exploration have laid the groundwork for the current push. Helium One, alongside Noble Helium, has conducted extensive surveys across Tanzania, culminating in a breakthrough in 2024 with the drilling of the Itambula West-1 well. Tests revealed helium concentrations of 5.5 percent at surface level, rising to 7.6 percent in deeper formations—levels considered highly competitive by global standards.
“This project has the potential to become a significant new source of helium worldwide,” said Lorna Blaisse, Chief Executive Officer of Helium One Global Limited, pointing to the exceptional geological profile of the Songwe reserves.
The company is now moving toward commercial production, with an 18-month roadmap that includes engineering design, environmental and social impact assessments, infrastructure development, and procurement of processing and transport systems.
If execution stays on track, Tanzania could emerge as one of the few new entrants capable of easing global supply constraints.
Beyond international markets, the project is expected to reshape the domestic economic landscape. In Songwe, local authorities anticipate job creation, infrastructure upgrades, and new business opportunities tied to logistics, services, and supply chains.
“Our priority is to ensure that investors succeed while our people benefit,” said Regional Commissioner Jabiri Makame, highlighting the government’s dual focus on investor confidence and local impact.
At the national level, revenues from dividends, royalties, and taxes could provide a new stream of foreign exchange while strengthening Tanzania’s attractiveness as a destination for resource investment. The government’s use of non-dilutable free shares further anchors long-term public benefit, according to Professor Sifuni Mchome, who chairs the Ministry of Mines discussion committee.
The project also carries implications beyond helium. Associated gases, including hydrogen, may be developed alongside extraction, positioning Tanzania within emerging clean energy value chains and broadening its role in the global energy transition.
For global markets, the significance is clear. Helium shortages have disrupted industries ranging from healthcare to semiconductor production, exposing the fragility of supply chains concentrated in a few regions. A new, stable source from East Africa could help rebalance the market—if volumes scale as expected.
For Tanzania, the stakes are equally high.
Success would not only diversify exports but also elevate the country’s strategic relevance in a resource increasingly tied to technological advancement and economic competitiveness. Failure, however, would underscore the complexities of moving from discovery to sustained production in a highly specialized sector.
For now, the momentum is unmistakable.
What lies beneath Songwe’s soil is more than a rare gas. It is a test case for how emerging economies can convert natural resources into long-term influence—and how a single discovery can ripple across global supply chains.
The helium beneath Tanzania may be invisible. Its impact, however, is set to be anything but.
