Tanzania Invites Compressed Natural Gas Investors

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Tanzania Petroleum Development Corporation (TPDC) is calling for investors to establish two large fueling stations in the commercial capital, Dar es Salaam, to support trucking supply of compressed natural gas (CNG) to retail stations located far from the Corporation’s pipeline infrastructure.

In the expression of interest, TPDC said the tender, which is open from July 19 to August 19, 2019, is an opportunity for other participants in the natural gas value chain to buy CNG from the Corporation at wholesale price to resell to end-users specifically vehicle owners.

“This is to enable scaling up of the gas utilisation potential in the transport sector by replacing costly and environmentally unfriendly diesel and petrol which are wholly imported,” said the published expression of interest yesterday contained in the East African. 

It said Tanzania buys bulk CNG for stations and in future will be extended to locations where the stations will be built if the location will be in proximity to the current pipeline infrastructure.

The east African country supplies compressed natural gas for the transport sector and piped natural gas for the domestic, commercial and industrial sector. Currently, TPDC is developing gas supply infrastructures in Dar es Salaam, Mtwara and Coast Regions. And the CNG plants at Ubungo for vehicles using both natural gas and normal gasoline.

The use of natural gas is further decreasing air pollution and curbed diseases caused by the use of charcoal the East African said. For automobiles, compressed natural gas is believed to be cheaper and more eco-friendly than diesel or gasoline systems.

Quoting available data, the journal said about 100,000 hectares of forests are lost per year as many Tanzanians are heavily dependent on biomass.

TPDC said that after completion of the construction of the 542-kilometre gas pipeline from Mtwara to Dar es Salaam, it will put up a $150-$200 million mega plant to facilitate the transportation of natural gas to large-scale industries and households. Tanzania has been exploring for natural gas for more than 50 years.


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