- Tanzania increases construction of CNG filling stations.
- Chinese companies tendered for vehicle conversion for CNG use.
- Investors invited into the CNG sub-sector.
Tanzania CNG sector is growing, with Compressed Natural Gas (CNG) now the go-to clean energy that the country is investing in for public vehicle use as the government moves to significantly reduce the use of fossil fuels. To fast-track this development, the Tanzania Petroleum Development Corporation (TPDC) is currently completing the construction of a Compressed Natural Gas (CNG) mother station in Dar es Salaam that is touted as a significant advancement in the country’s energy infrastructure.
The development has been a long time coming, it is now more than half a century since Tanzania first discovered natural gas in 1974 on the Songo Songo Island in Lindi Region. A second discovery was made in 1982 this time at the Mnazi Bay in Mtwara Region, but it was not until the turn of the millennium that the natural gas was commercialized.
According to the TPDC, there are about four service providers that are actively carrying out midstream and downstream natural gas activities. These are Songas Limited, Pan African Energy Tanzania Limited (PAET), Maurel & Prom (M&P) and TPDC itself.
Other players in the sector include Ophir Energy plc, Shell/BG Group plc (BG), Statoil, ExxonMobil, and Ndovu Resources (Aminex). The government is now calling for investors to come into the Tanzania CNG sector to speed up its development. According to the Ministry of Energy and Minerals confirms that, so far, natural gas finds in country amount to an impressive 57.25 trillion standard cubic feet.
So far, there is a lot of development that has been done to improve the Tanzania CNG sector, especially in producing and distributing natural gas but it has mostly been for export. Up until now, production for domestic use was mostly directed to large factories and not for the individual consumer.
Only recently has there been an increase in home use of gas for cooking and now, the country is moving on to vehicle use. It is for this reason that the CNG) mother station in Dar es Salaam is been built and is expected to reach completion by end of this year.
“The construction of this facility represents a significant step forward in enhancing the availability and use of natural gas in Tanzania. This will help reduce carbon emissions and mitigate climate change effects,” reported the TPDC Chairman of the Board of Directors, Ambassador Ombeni Sefue.
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The CNG mother station in Dar es Salaam features four gas dispensers, and has the capacity to accommodate at least eight vehicles at a time. This station also serves as a distribution center complete with three loading gantries for CNG tube trailers to distribute the natural gas to smaller stations.
According to the CNG Project Manager from TPDC, Engineer Aristides Katto, two other large stations are underway one in Dar es Salaam and another in the Coast Region. Construction of these stations is been tendered by Chinese companies who are handling the design and supply of the required equipment which will be imported into Tanzania.
“We anticipate the equipment will arrive in mid-November and we expect construction to be completed by December,” TPDC engineer Katto reported to media recently.
The engineer said, TPDC, working with the Chinese, is also investing in at least six mobile stations, each with the capacity to refuel at least two vehicles at a go.
Notably, the CNG stations, both mobile and stationary is open to other companies the authorities say there are over 40 private companies that have already been authorized to set up CNG stations across various regions of the country.
Along with set up of the filling and service stations, there is also the construction of garages designed to convert vehicles from traditional fuel engines to operate on the gas system.
“By developing the CNG infrastructure, Tanzania is effectively diversifying its energy sources beyond traditional fuels like diesel and petrol which helps stabilize energy supply and reduce dependency on imported fuels,” explains the government official.
He also pointed out the environmental benefits involved including the reduction of carbon emissions by vehicles and other automobiles like motorcycles that have in recent years proliferated the market.
Energy experts say CNG is a much cleaner alternative to fossil fuels because it emits significantly lower levels of carbon dioxide (CO2) and other related pollutants. Other economic advantages include cost savings for the consumer because CNG is cheaper than either petrol or diesel.
“This cost-effectiveness will lower operational costs for businesses especially those in the transportation sector and this will have much broader economic benefits,” detailed the TPDC official.
Reached for comments, the Director of Downstream Operations at the Tanzania Petroleum Development Corporation (TPDC), Mr. Emanuel Gilbert, said the Dar es Salaam based CNG mother station will also service neighbouring regions of Morogoro, Mbeya and Tanga through the said specialized mobile stations.
“In addition to servicing vehicles in Dar es Salaam, TPDC will expand service delivery to customers in the neighbouring regions through mobile units…we anticipate that by December, these areas will also establish their own permanent stations and engage with TPDC for gas supply,” he told press.
Tanzania natural gas capacity
Tanzania CNG sector has grown tremendously, according to the TPDC, Tanzania ranks 82nd globally with an estimated 230 trillion cubic feet of natural gas reserves and of this, 57.5 trillion cubic feet has already been confirmed.
The sector operates under the Tanzania Natural Gas Utilization Master Plan 2016-2045 which has allocated 8.8 trillion cubic feet for electricity production, 500 billion cubic feet for household use, 3.6 trillion cubic feet for industries, and 600 billion cubic feet for vehicles.
As mentioned there are already several CNG refilling stations currently under construction these include; the main station in Ubungo, Dar es Salaam which services over 800 vehicles per day.
Others are the Tazara station (also in Dar es Salaam) which is managed by Enric Gas Technology Tanzania Limited and has the capacity to handle some 300 vehicles per day, and then there is the larger airport based CNG station that can handle some 1,200 vehicles per day.
In conclusion, the TPDC reports that, in partnership with several private sector players, it plans to set up an additional 30 gas refilling stations across the commercial capital of Dar es Salaam.
