Oil & Gas

Deputy Minister for Energy Salome Makamba told Parliament that the government, through Tanzania Petroleum Development Corporation in partnership with the private sector, plans to construct eight CNG stations in Dar es Salaam, one in Mtwara, and one in Morogoro. She said the move follows government efforts to encourage wider CNG adoption after the removal of a 382 Tanzanian shilling per kilogram tax on CNG, a measure aimed at making gas-powered transport more affordable for businesses and ordinary citizens. The expansion is expected to reduce transport costs while also helping consumers shift away from expensive imported petroleum fuels.

The government is also finalizing procurement for five mobile CNG stations, which will be deployed in Dar es Salaam, Morogoro, and Dodoma to improve accessibility while permanent infrastructure expands. According to the minister, Tanzania currently has 18 operational CNG stations in Dar es Salaam, Mtwara, and Coast regions, managed jointly by the government and private investors. In addition, discussions are ongoing with six private companies to develop mini-LNG projects that will transport liquefied natural gas by specialized trucks to regions not yet connected to the national gas pipeline network.

The growing investment in CNG infrastructure is expected to deliver major economic and environmental benefits by lowering fuel import dependence, reducing transport costs, and creating new opportunities for local industries linked to natural gas distribution and conversion technologies. In pipeline-connected regions such as Mtwara, the government is also prioritizing household and institutional gas distribution to ensure communities directly benefit from the country’s natural gas resources. The expansion marks another significant step in Tanzania’s long-term energy transformation strategy, where natural gas is increasingly becoming central to transport, industrial growth, and national economic development.