This archive report was first published on 21 July 2021.
On July 21, 2021, Tanzania's government announced a significant investment in the development and use of natural gas, setting aside Tsh30 billion ($12.89 million) for compressed natural gas (CNG) projects.
This move is part of the country's efforts to reduce fuel import costs and promote a greener environment. According to the Energy Ministry, Tanzania spent nearly Tsh2.9 trillion ($1.246 billion) last year importing fuel.
Despite the potential of natural gas, the country has only utilized half a trillion units of the resource since its exploration began. Dr. Medard Kalemani, Minister of Energy, emphasized the need to convert more vehicles from carbon fuels to natural gas to save on fuel costs.
Dr. Kalemani highlighted the availability of two stations that provide vehicle conversion services from diesel and petrol fuel to compressed national gas use, located at the University of Dar es Salaam and the Dar es Salaam Institute of Technology. He urged the stations to revisit their prices for converting vehicles to CNG use, citing costs between Tsh1 million ($430) and Tsh1.5 million ($645) per vehicle.
With over 3,000 households already connected to CNG supplies in Dar es Salaam, Mtwara, and Lindi, and 701 vehicles using CNG in the commercial capital, Dar es Salaam, Tanzania is making significant strides in harnessing the potential of natural gas.
