Tanzania has launched one of Africa’s largest compressed natural gas (CNG) hubs as it steps up efforts to shift transport and energy use toward cleaner alternatives.
In a ceremony held on Monday, Puma Energy Tanzania, the firm behind the project, commissioned its most advanced CNG mother station in Dar es Salaam, with the government describing the project as part of the country’s clean energy transition.
Prime Minister Mwigulu Nchemba, who inaugurated the facility, stated that the project fits into Tanzania’s broader strategy to promote affordable and reliable energy while reducing environmental impact.
He described the station as an example of public private investment that supports national development goals and strengthens strategic infrastructure.
The new facility is designed to supply CNG to light vehicles, buses and heavy duty trucks. It will also serve as a central distribution hub, supplying CNG to satellite stations across the country through tube trailers.
Tanzania is seeking to expand the use of natural gas in mobility as it looks to reduce dependence on more polluting fuels and make use of its domestic resources.
The country holds an estimated 57.54 trillion cubic feet of natural gas reserves, which the government sees as a bridge fuel in its long term energy planning.
The Deputy Minister for Energy in the East African country, Salome Makamba, stated that Tanzania currently has 11 CNG stations and plans to raise the number to 20 by June 2026.
“The government will continue to create a conducive environment to facilitate investment in the CNG infrastructure and accelerate the use of clean energy in Tanzania,” she said.
How CNG fits into Tanzania’s energy plans
The government has set a long term target for most vehicles in the country to run on CNG by 2050.
This approach is part of a wider effort to promote cleaner transport while lowering fuel costs for households and businesses.
Beyond transport, the expansion of gas infrastructure is also expected to support industrial growth and reduce pressure on imported fuels.
On its part, Puma Energy Tanzania described the project as a long term commitment to the country’s energy future.
“This CNG mother station is more than just infrastructure; it is a symbol of our long term confidence in Tanzania and our commitment to creating shared value,” said managing director Fatma Abdallah.
“We are proud to partner with the government to deliver a project that will power Tanzania’s progress for years to come,” she added.
The Tanzanian government holds a shareholding stake in Puma Energy Tanzania, making the project a joint public private venture.
The Treasury Registrar, Nehemiah Mchechu, noted that this ownership structure allows commercial success to translate directly into public revenue.
“This joint venture proves that combining government participation with private sector efficiency delivers vital infrastructure and high financial returns for Tanzanians,” he said.
Jobs, revenue and local participation
Construction of the Dar es Salaam CNG station created more than 300 jobs, all filled by Tanzanian workers. These included about 100 specialised roles for engineers and technicians involved in gas infrastructure and operations.
The project also prioritised local contractors and small and medium sized enterprises, injecting capital into the regional economy during the construction phase. Once fully operational, the station is expected to provide long term employment and support skills transfer within the natural gas sector.
Over the past three years, Puma Energy has paid more than 1.4 trillion shillings in taxes and duties to the Tanzanian government.
In 2025, the company also declared a 21 billion shilling dividend to shareholders.
Its tax compliance and transparency record has earned several recognitions from the Tanzania Revenue Authority.
As a result, the government is encouraging more private investors to participate in CNG infrastructure as Tanzania seeks to balance economic growth with environmental protection.
