Songwe. Tanzania has formally entered the global helium industry.
This follows the signing of a production agreement between the government and Helium One Global Limited.
The deal was executed through the joint venture, Songwe Helium Limited, at a ceremony held on May 2, 2026 in Songwe Region.
Deputy Minister for Minerals, Steven Kiruswa, said the agreement marks a historic step.
He noted that Tanzania is now positioning itself as a strategic producer and supplier of helium.
He added that the move places the country on the global energy map.
He explained that global helium production remains highly concentrated.
The US and Qatar together account for more than 75 percent of total output.
Other producers, including Russia, Algeria, Canada, China and Poland, contribute smaller shares.
Global demand for helium continues to rise.
It is currently estimated at over six billion cubic feet annually.
Projections indicate that demand could exceed 8.5 billion cubic feet by 2030.
The increase is driven by its use in medical imaging, semiconductor manufacturing, aerospace and scientific research.
Kiruswa said Tanzania is well placed to benefit from this trend.
He cited progress made by Helium One Global Limited and Noble Helium in exploration activities.
He described the Southern Rukwa project as strategic.
It offers access to a high-value market with limited competition.
The project is expected to begin production within 18 months.
More than $60 million has already been invested.
The Songwe helium fields are considered to hold significant geological potential.
Early studies suggest high concentrations of helium, which is rare globally.
The Deputy Minister said the project could help ease the global helium shortage.
Supply disruptions in recent years have affected critical sectors, including healthcare and technology.
He noted that Tanzania could become part of the solution.
He added that helium extraction will be conducted alongside associated gases, including hydrogen.
Revenues from each resource will be accounted for separately.
This is intended to maximise economic returns.
Under the agreement, the government will hold a 17 percent stake in the joint venture.
This equity will be managed through Songwe Helium Limited.
The arrangement gives the state a direct role in strategic decisions.
It also ensures participation in project revenues.
Officials said the development aligns with Tanzania’s broader strategy to expand its extractive industries.
It also reflects efforts to diversify exports and attract foreign investment.
The Songwe project is now expected to move into its development phase.
Stakeholders say it could transform Tanzania into a key player in the global helium supply chain.
