The Tanzania Petroleum Development Corporation (TPDC) is advancing its commitment to providing affordable and environmentally friendly energy solutions by constructing three compressed natural gas (CNG) filling stations for TZS 18.9 billion.
The initiative seeks to reduce Tanzania’s dependence on imported fuel, lower energy costs, and encourage the private sector’s participation in the natural gas value chain.
The project comprises a flagship TZS 14 billion “mother” CNG station at the University of Dar es Salaam (UDSM) and two “daughter” stations located at Muhimbili National Hospital and Kibaha’s Kauruki area, each costing TZS 2 billion.
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These stations aim to address the growing demand for natural gas as a transportation fuel, particularly for vehicles and bajajis, which are key modes of transport in Tanzania.
During a presentation to the Permanent Parliamentary Committee for Energy and Minerals, Mr. Derrick Moshi, TPDC’s Director of Planning and Investment, shared updates on the construction progress of the mother CNG station, which is now 90 percent complete.
This facility will not only serve as a gas filling station but also act as a gas compression center for supplying daughter stations, a vehicle conversion hub, and a practical training facility for Univerty of Dar es Salaam (UDSM) students.
“The mother CNG station has a refueling capacity of up to 1,200 vehicles per day. Additionally, it will stimulate the private sector to invest in CNG infrastructure, attract more vehicles to use CNG instead of imported fuel, and provide UDSM students with hands-on experience in energy technology,” Mr. Moshi explained.
The facility’s production capacity of 3.1 million cubic feet per day surpasses the current daily usage of 230,000 to 250,000 cubic feet, highlighting its potential to serve a larger customer base and encourage more investment in the CNG subsector.
With only a few operational CNG stations in Dar es Salaam, refueling vehicles often involves long queues, discouraging some potential users.
The mother station’s higher capacity and role as a supply hub for daughter stations aim to alleviate this congestion while making natural gas more accessible.
The daughter stations at Muhimbili and Kibaha will extend services to strategic locations, reducing travel distances for users.
The TPDC’s plan extends beyond the initial three stations. Mr. Moshi revealed that additional CNG stations are planned for key areas in Dar es Salaam, including Tegeta, Temeke, Mandela Road, Mbagala, and BRT stations.
These expansions will cater to the growing demand for CNG services within the city.
One of the challenges hindering the broader adoption of CNG is the high cost of vehicle conversion, which ranges between TZS 1.2 million and TZS 3 million, depending on vehicle size.
To address this, TPDC is engaging the Ministry of Finance to explore tax reductions on conversion materials.
“Reducing the cost of vehicle conversions will make CNG more affordable and encourage more drivers to make the switch,” Mr. Moshi said.
By decreasing reliance on imported fuel, this shift will also enhance the country’s energy security and save foreign exchange.
The Permanent Parliamentary Committee for Energy and Minerals lauded the government’s efforts to expand CNG infrastructure but urged for a broader geographical reach.
The committee’s chairperson, Mr. David Mathayo, called on the government to extend CNG services to regions beyond Dar es Salaam, suggesting the construction of pipelines to upcountry areas instead of relying on trucks to transport CNG.
“Expanding pipelines to other regions will allow vehicle owners across Tanzania to benefit from the country’s abundant natural gas reserves, ensuring affordable and sustainable energy access nationwide,” Mr. Mathayo said.
The committee also highlighted concerns regarding the agreement between UDSM and TPDC over the land designated for the mother CNG station. Currently, TPDC is leasing the land from UDSM, but the committee suggested that UDSM transfer the land to TPDC free of charge.
“Since both entities are public institutions serving the same citizens, waiving the lease agreement would reduce operational costs, leading to lower prices for end users,” Mr. Mathayo added.
This proposal aligns with the broader goal of reducing the financial burden on the end consumer.
The government is actively working to create a conducive environment for private sector investment in CNG infrastructure. Deputy Minister of Energy, Ms. Judith Kapinga, emphasized this during the committee session.
“We have revised regulations and criteria for vehicle conversion and the construction of CNG filling stations to attract private investors,” she assured.
By involving the private sector, the government hopes to accelerate the development of a comprehensive CNG network across the country.
The shift to CNG as a transportation fuel offers significant economic and environmental benefits.
CNG is a cheaper and cleaner alternative to diesel and petrol, reducing greenhouse gas emissions and air pollution in urban areas. Moreover, using locally sourced natural gas diminishes the country’s dependency on imported fuels, enhancing energy security and saving foreign currency.
The mother CNG station’s design as a multipurpose facility adds value by integrating energy supply, skills development, and business stimulation.
Offering practical training opportunities to UDSM students, it also fosters local expertise in energy technology, aligning with Tanzania’s broader goals of industrialization and capacity building.
As Tanzania continues to tap into its vast natural gas reserves, projects like these signal a promising future for the energy sector.
However, sustained momentum will require collaborative efforts between the government, private sector, and educational institutions, ensuring affordability, expanding regional access, and addressing operational challenges will be key to maximizing the potential of CNG as a transformative energy solution.
By implementing these strategies, TPDC and its partners aim to not only ease refueling bottlenecks in urban areas but also make Tanzania a model for sustainable and inclusive energy development. With the mother CNG station nearing completion and further expansions on the horizon, the country is poised to unlock the full potential of its natural gas resources for economic growth and environmental sustainability.
