Songwe – The Government of Tanzania has signed a landmark gas extraction agreement with Helium One Global Limited through their joint venture, Songwe Helium Limited, in a ceremony held in the Songwe Region on May 2, 2026. 

The deal marks a significant step in Tanzania’s ambition to become a key player in the global helium market.

The project, located in the Southern Rukwa Basin, is considered strategic due to helium’s high value and relatively low global competition. 

Officials say the development could position Tanzania as an influential supplier, helping to address the global shortage of the gas. In addition to helium, associated gases such as hydrogen will also be extracted.

Currently, global helium production is dominated by a small group of countries, notably the United States and Qatar, which together account for more than 75 percent of total output. Other contributors include Russia, Algeria, Canada, China, and Poland.

Speaking at the signing ceremony, Deputy Minister for Minerals, Dr. Steven Kiruswa, noted that global demand for helium has already exceeded 6 billion cubic feet annually and is projected to surpass 8.5 billion cubic feet by 2030. He added that companies such as Helium One Global Limited and Noble Helium have made significant progress in exploration activities within Tanzania.

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Dr. Kiruswa further revealed that under the agreement, the Tanzanian government will hold a 17% stake in Songwe Helium Limited. This will allow the state to participate directly in strategic decisions and benefit financially from the project.

“This is a practical implementation of President Samia Suluhu Hassan’s vision that national resources must serve as a foundation for the country’s prosperity,” he said.

The project has already attracted an investment of $60 million and is expected to deliver wide-ranging economic benefits. These include job creation for local youth, business opportunities for Tanzanian suppliers, improved infrastructure, increased government revenue, foreign exchange earnings, and enhanced social services such as roads and community facilities.

Helium One Global Limited Chief Executive Officer, Lorna Blaisse, described the agreement as a major milestone for both Tanzania and the global helium market. She highlighted that the project holds significant reserves and is moving toward commercial production following successful drilling operations in 2024, which confirmed helium at the Itambula West-1 well.

“Extended well testing in the third quarter of 2024 recorded helium concentrations of 5.5% at surface level and up to 7.6% from fractured Karoo and Basement rock formations,” Blaisse said.

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She added that following the signing of the mining license, Songwe Helium Limited will proceed with development plans aimed at achieving its first commercial helium production. 

These steps include finalizing development strategies, implementing environmental and social impact management systems, designing infrastructure, and procuring processing and transportation equipment.

The agreement is widely seen as a turning point that could elevate Tanzania’s role in the global energy and industrial gas sectors.