Oil & Gas

Tanga is set to become a major clean energy hub as global LPG leader Petredec and Tanzania’s ASAS Group of Companies have partnered to launch a large-scale LPG terminal. Strategically located on a 26-hectare site in Chongoleani, Tanga Bay, the facility aims to revolutionize regional energy logistics by serving as a key gateway for LPG imports into Tanzania and neighboring countries. The terminal’s first phase will feature six massive mounded storage spheres with a 40,000-cubic-meter capacity, a 2.8 km underwater pipeline, and the ability to receive Very Large Gas Carriers (VLGCs). This ambitious infrastructure addresses long-standing challenges of congestion and capacity limitations at Dar es Salaam port.

At the terminal’s launch, Petredec Global CEO Jonathan Fancher emphasized the project’s potential to transform energy access across East Africa. He noted that large-scale infrastructure is essential to securing reliable and affordable LPG supply, especially as demand continues to rise. Dr. Doto Biteko, the deputy prime minister and energy minister, echoed this sentiment, stating that Petredec’s investment aligns with Tanzania’s national clean cooking strategy. The facility supports government goals to replace traditional biomass fuels, helping combat deforestation and indoor air pollution.

The terminal will operate under an open-access model, allowing multiple operators to use the facility—a move expected to create a competitive market and lower consumer prices. ASAS Group CEO Naif Jaffer Abri hailed the joint venture as a landmark partnership uniting global and local strengths for a transformative energy project. LPG is seen as a practical solution for off-grid communities, and the terminal is positioned to enable broader adoption, especially in rural and peri-urban areas. This project is not just about energy—it’s a catalyst for economic development, public health improvements, and environmental preservation.

Construction is set to begin soon, with the terminal expected to be operational by the end of 2027. The government has already developed road access and awarded the engineering, procurement, and construction (EPC) contract. The $100 million project represents a key part of the government’s $4 billion clean cooking transition plan, signaling to investors that Tanzania is a secure and promising market. Officials estimate that the terminal alone could generate up to 2,000 jobs, contributing to the sector’s projected 320,000 job creation goal under clean energy initiatives.