Tanzania Launches Construction of USD 100 Million Tanga LPG Terminal to Serve as Regional Energy Hub

On 5th June 2025, Tanzania’s Deputy Prime Minister and Minister for Energy, Dr. Doto Biteko, launched the construction of the USD 100 million Tanga LPG Terminal project.

Located on 26 hectares in Chongoleani, in the Tanga Bay, the terminal will feature six LPG storage spheres with a combined capacity of 40,000 cubic meters in its first phase, eight truck loading gantries, and a 2.8 km underwater pipeline.

The project is designed to accommodate Very Large Gas Carriers (VLGCs), which are currently unable to dock at Tanzanian ports, positioning the terminal as a major supply and distribution point for Tanzania and neighboring countries.

The terminal is set to become the country’s largest liquefied petroleum gas (LPG) facility, aiming to boost clean cooking access, create jobs, and serve as a regional energy hub.

The project is being developed through a partnership between Petredec, a global LPG value chain company, and ASAS Group, a Tanzanian fuel and LPG transport conglomerate.

Speaking at the launch, Dr. Biteko urged the project developers to design the implementation plan in a way that ensures Tanzanians are prioritized in job opportunities, stating there is no need to recruit workers from distant areas.

“This project must serve as a model—every task a Tanzanian can perform should be assigned to one, so that at least 40% of the construction budget circulates within the country. It will be disappointing to see every position filled by foreign personnel,” Biteko stressed.

He also called upon investors to consider extending LPG cylinder refilling services to rural areas and to introduce flexible technologies that allow consumers to pay for gas based on usage instead of filling entire cylinders.

He further noted President Samia’s ambition to make the Tanga region the business hub of the East African region, including efforts to upgrade the electricity transmission line from Majani Mapana in Tanga to Pemba in Zanzibar from 33kV to 132kV.

During his address, Tanzania’s Minister of Industry and Trade, Hon. Dr. Suleiman Jafo, underlined that Dr. Biteko’s leadership has strengthened the energy sector and that the successful completion of the gas hub will make Tanzania a key LPG exporter and stimulate industrial growth.

On his part, the CEO of the Tanzania Oil and Gas Association (TOAG), Abdulsamad Abdulrahim, noted that the project will help revolutionize East Africa’s energy sector and reduce the reliance on unclean fuels.

“This is an opportunity for local investors to demonstrate their capabilities, and they are ready to work. We commend the government for creating an enabling environment for such joint ventures,” added Abdulrahim.

In his address, Jonathan Fancher, the CEO of Petredec, stated: “History has proven that large-scale infrastructure is the indispensable key to the reliable and competitive supply of LPG. We are once again proud to contribute to the region’s development and are confident that the Tanga LPG Terminal will be instrumental in helping establish Tanzania as a prominent clean energy hub in the wider East African region. We look forward to collaborating with the ASAS Group of Companies on this transformative project.”

Delivering his remarks, the CEO of ASAS Group of Companies, Naif Jaffer Abri commented: “The Tanga LPG Terminal stands as a powerful example of how two major companies can successfully unite their local and international strengths to bring to life a meaningful and inspiring project, one that will leave a lasting mark on our nation’s history. We eagerly look forward to the realization of this exciting initiative, which promises not only significant benefits for the entire LPG industry but also expanded access to clean cooking for households across the country.”

Petredec expects the full-scale construction of the terminal to begin in the coming weeks, with completion targeted for the end of 2027.

Tanzania’s Liquefied Petroleum Gas (LPG)

According to the 2024 report by Tanzania’s Energy and Water Utilities Regulatory Authority (EWURA) on the downstream petroleum sector, the use of LPG continues to increase each year.

In the fiscal year 2023/24, LPG consumption reached over 403,000 tonnes, up 38% from 293,000 tonnes in 2022/23.

The Tanzanian government aims to expand LPG usage to over 80% of Tanzanian households by 2034 under the National Clean Cooking Strategy (2024–2034).

To achieve this goal, the government is implementing a subsidy programme to reduce the cost of LPG cylinders by up to 50%, and by April 2025, 154,225 out of a targeted 452,445 cylinders had been distributed nationwide.