TANZANIA MOVES TO BUILD CNG INFRASTRUCTURE TO DRIVE DOWN FUEL COSTS AND ATTRACT INVESTORS

Tanzania steps up CNG investment drive to cut fuel costs and boost clean energy transition.

Tanzania Cng Energy transition strategy Crude oil Transformation Investment.
Deputy Minister of Energy, James Mataragio
Deputy Minister of Energy, James Mataragio



Tanzania is moving to cut its reliance on costly imported oil by positioning compressed natural gas (CNG) at the heart of its energy transition strategy.

Deputy Minister of Energy, James Mataragio, said on Friday that the government will convene a national forum with investors, banks, and regulators to unlock financing for CNG fueling stations. The plan is to make CNG widely available as a cheaper and cleaner alternative to gasoline, while laying the groundwork for the country’s long-term energy security.

Private investors are already stepping in. BQ Construction is developing a facility capable of fueling 180 vehicles per day, and Puma Energy plans to launch four CNG stations within three months. As banks warm up to the sector, officials are confident that investment momentum will accelerate.

Nigeria’s recent success provides a model. Backed by $700 million in new investments, Africa’s top oil producer has used CNG to slash transport costs and reduce reliance on expensive gasoline. With pump prices at 230 naira ($0.15) per liter compared to over 900 naira ($0.59) for petrol, Nigeria aims to put one million CNG-powered vehicles on the road by 2027.

For Tanzania, the stakes are higher than just cheaper fuel. The government wants to leverage its offshore gas reserves to establish itself as a regional energy player, while ensuring a low-carbon growth path. A Dairy Hills study suggests CNG adoption could lower national energy costs by up to 58%.

Still, success will depend on overcoming key hurdles building infrastructure, training technicians for vehicle conversions, and sustaining investor confidence. If Tanzania manages to replicate Nigeria’s momentum, CNG could become both an economic lifeline and a springboard for a cleaner energy future.

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