Tanzania launches one of Africa’s largest compressed natural gas hubs.

Executive Summary

Tanzania has taken a massive step toward a clean energy transition by launching one of Africa’s largest compressed natural gas (CNG) hubs in Dar es Salaam. Developed through a strategic public-private partnership with Puma Energy Tanzania, this advanced mother station will supply cleaner fuel to a wide range of vehicles while acting as a central distribution point for satellite stations. By tapping into its vast domestic natural gas reserves, Tanzania aims to reduce its reliance on polluting imported fuels, foster job creation, and generate significant public revenue.

Key Highlights

• Strategic Infrastructure Launch: Inaugurated by Prime Minister Mwigulu Nchemba, the new CNG mother station is designed to supply light vehicles, buses, and heavy-duty trucks.

• Hub-and-Spoke Distribution: The Dar es Salaam facility will function as a central hub, utilizing tube trailers to distribute CNG to various satellite stations nationwide.

• Public-Private Synergy: The Tanzanian government holds a shareholding stake in Puma Energy Tanzania, ensuring the commercial success of the energy transition translates directly into national public revenue.

• Local Economic Boost: The project heavily prioritised local contractors and small and medium-sized enterprises (SMEs) during the construction phase, injecting capital directly into the regional economy.

• Skill Development & Employment: Construction generated hundreds of local jobs, including highly specialised engineering roles, prioritising long-term skills transfer within the natural gas sector.

By the Numbers

Metric / Milestone	Data / Figure	Context
National Gas Reserves	57.54 trillion cubic feet	Estimated domestic natural gas reserves, Tanzania plans to leverage as a bridge fuel in its long-term planning.
Current CNG Stations	11	The number of active CNG stations currently operating in Tanzania.
Expansion Target	20	The planned number of operational CNG stations targeted by June 2026.
Long-Term Adoption Target	2050	The year by which the government aims for the majority of the country's vehicles to run on CNG.
Jobs Created	300+	Total Tanzanian workers employed during construction, including 100 specialised engineering and technical roles.
Taxes & Duties Paid	> 1.4 trillion shillings	The total amount paid by Puma Energy to the Tanzanian government over the past three years.
Shareholder Dividend	21 billion shillings	The dividend declared by Puma Energy to its shareholders in 2025.

Main Takeaway

Tanzania’s ambitious expansion of CNG infrastructure serves as a highly successful blueprint for balancing economic growth with environmental protection. By capitalising on its 57.54 trillion cubic feet of natural gas reserves and fostering robust public-private ventures like the one with Puma Energy, Tanzania is successfully reducing its carbon footprint, driving immense local job creation, and securing long-term financial returns for its citizens.

Legal Disclaimer:

The information provided in this blog post is for general informational purposes only and does not constitute financial, investment, legal, or other professional advice. While we strive to provide accurate and up-to-date information, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog post or the information, products, services, or related graphics contained on the blog post for any purpose. Any reliance you place on such information is therefore strictly at your own risk. Readers are encouraged to conduct their own due diligence and consult with appropriate professionals before making any decisions based on this information. The views and opinions expressed in this post are those of the author(s) and do not necessarily reflect the official policy or position of any other agency, organisation, employer, or company.