Government plans mini LNG distribution in four regions within 18 months



Dar es Salaam. The Tanzania Petroleum Development Corporation (TPDC) is expected to finalise the ownership structure of the Min LNG project by the end of September, paving the way for implementation over the following 18 months.

The project will expand natural gas distribution to areas not connected to the existing pipeline network, with Arusha, Dodoma, Mwanza and Zanzibar among the areas expected to benefit.

TPDC director of planning and investments Derick Moshi told The Citizen on yesterday that TPDC, Rosetta Energy Solutions, a subsidiary of TAQA Arabia, and Africa50 signed an agreement last month to implement the project.

The partners are finalising the shareholding structure, with TPDC seeking a stake of more than 30 percent.

“We have completed the feasibility study and the process of acquiring land is ongoing, while other preparations are continuing. The project will take 18 months from the signing of the agreement,” Mr Moshi said.

He said the project would provide an alternative means of transporting natural gas to areas where extending pipelines would be difficult, with industries and vehicles expected to be among the main users.

According to the Energy and Water Utilities Regulatory Authority (Ewura) second-quarter 2025/26 fact sheet, power generation accounts for 74.43 percent of natural gas consumption, industries 24.65 percent, while CNG and household, commercial and institutional users account for 0.92 percent.

Tanzania has 12 CNG filling stations, including 10 in Dar es Salaam, one in Pwani and one in Mtwara. There are 16,154 vehicles and three-wheelers using CNG.

Natural gas is also used by 59 industries, including 46 in Dar es Salaam, 12 in Pwani and one in Mtwara. In the household sector, 1,654 households are connected to gas distribution networks, while 23 commercial and institutional users are connected.

Petroleum Upstream Regulatory Authority acting director general Charles Sangweni said the project could increase gas consumption and create demand for further exploration and investment.

He said Pura was preparing to announce its second bidding round, while TPDC continued with exploration activities to meet growing demand.