Oil & Gas

Northwestern Tunisiais undergoing a quiet but significant energy transformation, transitioning from heavy fuel oil to natural gas. Spearheaded by STEG (Société Tunisienne de l’Électricité et du Gaz) and supported by €49.39 million in financing from the African Development Bank, this shift is part of the broader Natural Gas Transport and Distribution Network Development Project in Western Tunisia. The initiative aims to modernize the region’s energy infrastructure, reduce reliance on oil-based fuels, and promote sustainable industrial development.

For major local industries such as SICAM, a prominent agri-food processor, the change has brought substantial benefits. According to Kamel Trabelsi, SICAM’s Deputy Director General, the company has cut pollution, lowered production costs, and improved efficiency—saving up to 500,000 Tunisian dinars per season. With boilers now reaching 95% capacity more quickly and requiring less maintenance, the company’s reliance on natural gas—about 17,000 m³ per production cycle—has proven both environmentally and economically advantageous.

The benefits extend beyond SICAM. Industries like brick yards and cement plants are experiencing similar gains, with improved energy access enabling business expansion and the establishment of new industrial operations in areas that were previously underserved. Mehdi Khoali, Chief Operations Officer at the African Development Bank, emphasized that the transition is about more than just cleaner fuel; it's a driver for industrial growth, job creation, and increased economic resilience throughout the region.

Natural gas has already been activated in Béja Sud and Mjez Elbeb, with more than 1,250 residential and industrial subscribers connected to the network. The project is set to expand its reach to 13,500 subscribers across 19 municipalities, marking a major step toward energy diversification and national industrialization. Additionally, the initiative is being praised as a model of effective donor collaboration, with STEG highlighting the African Development Bank’s prompt fund disbursement—typically within five to seven days—as crucial to maintaining the project’s timeline.