Tanga International Energy Terminal for Liquefied Petroleum Gas (LPG) in Tanzania will be constructed with a $100 million investment, a joint venture between the Tanzanian firm Asas Limited and UK-based Petredec.
Once operational, the project aims to reduce LPG prices by 40%, making clean cooking energy more affordable for Tanzanian households and expanding supply to neighboring countries.
The terminal is projected to be completed by December 2027.
The facility, strategically located on a 26-hectare site in Tanga Bay, will feature six mounded storage spheres with a capacity of 40,000 cubic metres in its first phase, eight truck loading gantries, and a 2.8-kilometre underwater pipeline, as stated in MSN report.
Petredec’s Managing Director for Africa, Michael Demond, emphasized the project’s role in ensuring affordable and reliable LPG supply.
“Large-scale infrastructure is key to affordable and reliable LPG supply. We are proud to support this transformative project.” Demond stated.
The terminal will address supply chain problems, a major factor in high LPG costs, by increasing storage and distribution capacity.
In addition, the Deputy Prime Minister, Doto Biteko, said the initiative aligns with Tanzania’s goal to boost clean energy adoption, noting that LPG usage rose from 300,000 tonnes in 2022/23 to 400,000 tonnes in 2023/24, driven by the national clean energy push.
Government support and economic impact
Tanzania’s Deputy Prime Minister and Energy Minister, Doto Biteko, stated that the project aligns with national energy goals.
“This project supports our vision of ensuring 80 percent of Tanzanians have access to clean energy by 2034,” said Biteko
He urged investors to prioritize local contractors to create jobs and stimulate economic growth.
“If small jobs that Tanzanians can do are given to foreigners, our economy cannot grow”. Said Biteko
The government’s commitment to creating an enabling investment environment helps foster private-sector partnerships to modernize energy infrastructure, he added
Regional implications
The Tanga terminal will not only serve Tanzania but also export LPG to East African countries, strengthening regional energy security.
By slashing prices by 40%, the project could reduce reliance on traditional biomass fuels, improving health outcomes and environmental sustainability.
Tanga Regional Commissioner Batilda Buriani hailed the terminal as a catalyst for local development.
“This project will put Tanga on the global map. It is expected to create over 1,000 direct and indirect jobs, further boosting regional income,” she said
However, challenges such as project execution timelines and global LPG price fluctuations may impact the anticipated cost reductions.
