Orca Energy Group has warned that its subsidiary PanAfrican Energy Tanzania may cease operating Tanzania's Songo Songo gas field when its production licence expires on 10 October 2026, raising the prospect of disruption to natural gas supplies currently flowing to Tanzanian power plants and industrial consumers. The warning underscores the urgency of completing a pending ownership transition before the deadline.
The proposed sale of the Songo Songo operation to Taifa Gas and Amber Energy Investment remains subject to regulatory and government approvals that have yet to be granted. PanAfrican Energy Tanzania has already recommended that preparations begin for a possible transfer of operating responsibilities, signalling that the company is no longer confident the approvals will arrive in time for a seamless handover. The situation puts the field's continuity of supply in question at a time when Tanzania depends on Songo Songo gas to keep power generation and industrial activity running.
Songo Songo is Tanzania's principal domestic gas asset, feeding a pipeline network that delivers fuel to Dar es Salaam's power utilities and a range of industrial offtakers. Any operational gap between the licence expiry and a fully approved new operator taking the helm could have material knock-on effects for the country's electricity grid. The Tanzanian government and the regulator face pressure to accelerate the approval process if supply disruptions are to be avoided, but no revised timeline has been publicly confirmed.
The transaction structure — a negotiated sale from Orca Energy Group to two incoming buyers — remains at the heads-of-agreement or sale-and-purchase stage pending official sanction, meaning the deal is not yet a ratified contract. Until approvals are secured and a new operating entity is formally constituted, the field's future management remains legally unresolved. The October deadline concentrates minds on both sides: Orca has a commercial interest in an orderly exit, while Taifa Gas and Amber Energy Investment need sufficient lead time to mobilise operational capability before licence transfer.
For the broader Tanzanian gas sector, the Songo Songo situation illustrates the regulatory complexity that can accompany asset sales in a market where state consent is required at multiple levels. The outcome will be closely watched by other upstream operators assessing how Tanzania handles licence transitions, particularly as the country presses ahead with its ambitions to develop larger offshore gas reserves and attract international investment into LNG infrastructure. A smooth resolution would reinforce investor confidence; a disorderly shutdown would do the opposite.