Tanzania has inaugurated one of Africa’s largest compressed natural gas (CNG) hubs, a strategic initiative aimed at accelerating the country’s transition to cleaner energy and supporting broader industrial growth, officials announced on Monday.
The hub, located in the industrial outskirts of Dar es Salaam, is designed to process, store, and distribute CNG to power plants, transport fleets, and industrial users. The facility is expected to significantly reduce the reliance on conventional liquid fuels such as diesel and petrol, cutting carbon emissions and fostering the adoption of low-carbon alternatives.
Speaking at the launch, Tanzania’s Minister of Energy and Minerals, Esther Mahondo, highlighted the hub’s potential to transform the nation’s energy landscape. “This hub represents a milestone in Tanzania’s green transition agenda. By leveraging our abundant natural gas resources in a sustainable manner, we can provide affordable, clean energy to industries and communities while contributing to climate action,” she said.
The project, developed through a public-private partnership, involved an investment of approximately $250 million and incorporates state-of-the-art compression, storage, and distribution technology. It is expected to supply hundreds of industrial and transport clients across Tanzania, with plans for regional expansion to neighboring countries in East Africa.
Tanzania possesses substantial natural gas reserves, primarily concentrated offshore in the Indian Ocean and onshore in the south and central regions. While the country has long exported liquefied natural gas (LNG) for industrial and power generation purposes, domestic consumption has remained limited. The new CNG hub aims to change this dynamic, providing a cost-effective and environmentally friendlier fuel alternative for domestic industries and public transport.
More Read
Energy experts note that the initiative could have far-reaching implications for Tanzania’s economy and energy security. By providing a reliable source of low-carbon fuel, the hub is expected to reduce operational costs for transport and manufacturing companies, attract new investment into industrial corridors, and create skilled jobs in engineering, operations, and maintenance.
The launch of the hub coincides with Tanzania’s broader efforts to integrate sustainable energy solutions into its national development strategy. Authorities have set ambitious targets to increase the share of clean energy in the national mix, including solar, wind, and natural gas, in line with the country’s National Energy Policy and commitments under the Paris Agreement.
In addition to environmental benefits, the CNG hub is expected to enhance regional energy cooperation. Tanzania is exploring partnerships to supply CNG to landlocked neighbors such as Uganda, Rwanda, and Burundi, where demand for clean and affordable energy is growing. Officials say these initiatives could strengthen East Africa’s energy integration, support industrialization, and reduce reliance on imported fuels.
More Read
The facility also forms part of a broader effort to leverage natural gas for domestic value addition, including electricity generation, industrial processing, and transport applications. Experts highlight that shifting from liquid fuels to compressed natural gas can reduce air pollution, lower greenhouse gas emissions, and enhance energy efficiency, particularly in heavy transport and industrial sectors.
“This is a transformative project for Tanzania and the region,” said Dr. Joseph Maleko, an energy analyst based in Dar es Salaam. “It demonstrates how natural gas can serve as a bridge fuel, enabling economic growth while transitioning toward cleaner energy systems.”
The CNG hub is expected to be fully operational by mid-2026, with capacity set to expand in phases over the next five years. Government and private sector partners say the project marks a major step toward a low-carbon, industrially productive future for Tanzania and positions the country as a leader in green energy development in Africa.
