Dar es Salaam. Tanzania will convene stakeholders in the compressed natural gas (CNG) sector in a bid to address investment challenges and reduce project costs, a senior government official has announced.
Deputy Permanent Secretary in the Ministry of Energy, Dr James Mataragio, said the planned meeting will bring together investors, operators, and regulators to share knowledge and explore ways of easing financing difficulties that have slowed sector expansion.
“Technology in the gas sector is evolving rapidly. Some companies procure equipment from China, others from Canada. By bringing them together, they will be able to exchange experiences, which will help cut investment costs,” Mataragio told reporters on Friday, August 29, 2025 during a tour organised by the Tanzania Petroleum Development Corporation (TPDC) to inspect CNG filling stations under construction in Dar es Salaam.
He dismissed perceptions that gas projects are prohibitively risky and expensive, emphasising that costs vary depending on the scale of investment.
“For instance, the Tanhealh station was built at a cost of Sh1 billion. We encourage investors to continue putting money into this sector because government institutions are ready to support them quickly,” he said.
Mataragio acknowledged that local banks had been reluctant to provide loans to CNG developers due to limited understanding of the business model, but noted that lenders are beginning to change their stance.
“Initially, it was difficult for banks to extend credit. Now they are starting to recognise the potential and have begun lending. I urge banks to treat this like any other business and provide financing to investors,” he added.
The government has set an ambitious target for 80 per cent of Tanzanians to be using clean energy by 2034, underscoring its commitment to expand the use of natural gas in transport and households.
On the investment side, BQ Construction Limited Chief Executive, John Bura, said his company is building a mother station in Dar es Salaam with the capacity to fill 180 vehicles per day using three pumps. The project, valued at Sh5 billion, is expected to be completed within six months.
“The biggest challenge is access to bank financing. Many lenders hesitate because they claim they don’t understand the risks involved in projects like this. But as investors, we are ready to commit,” Bura said.
Meanwhile, Puma Energy’s natural gas project manager, Chagaka Kalimbia, revealed that the company is constructing a Sh6 billion mother station with four pumps capable of serving eight vehicles simultaneously.
“The station will be completed in October. Initially, we planned to build a conversion centre for vehicles, but many cars now arrive in Tanzania already converted. We appreciate the government’s decision to remove certain charges, which has supported sector growth,” Kalimbia said.
