Dar es Salaam. Tanzania’s growing shift towards natural gas is being credited as a key driver behind the sharp rise in earnings from the Songosongo and Mnazi Bay fields, according to the Tanzania Abstract 2024 report.
The nation’s increasing reliance on cleaner and more cost-effective energy sources has underpinned this growth.
Data from the National Bureau of Statistics (NBS) shows that revenue from natural gas climbed from Sh137.013 billion in 2020 to Sh358.192 billion in 2024.
The increase is largely attributed to the expanding use of natural gas in cooking, transportation, power generation, and industrial production.
Government figures indicate rapid infrastructure expansion. The Ministry of Energy’s 2025/2026 budget reveals that Tanzania’s pipeline network grew from 102.54 km in 2020/21 to 241.58 km by April 2025, connecting 1,514 households, 13 institutions, and 57 factories.
Additionally, more than 15,000 vehicles now run on compressed natural gas (CNG), reducing reliance on petrol and diesel.
Gas consumption has risen alongside this growth, increasing from 59.83 billion cubic feet in 2020/21 to 82.91 billion cubic feet by April 2025. This expansion has eased financial pressure on households and transport operators by lowering operating costs and shielding consumers from volatile global petroleum prices.
Economist Pro Abel Kinyondo highlighted two major advantages of natural gas: its cleaner emissions compared with petrol, diesel, and kerosene, and its lower cost.
“As infrastructure continues to develop, natural gas will become even more affordable and environmentally friendly,” he said, adding that improved accessibility will accelerate Tanzania’s efforts to achieve the targets of its Vision 2050
Development plan
Independent financial analyst Oscar Mkude noted that the revenue boost is closely linked to ongoing investments by the Tanzania Petroleum Development Corporation (TPDC) to expand gas distribution infrastructure.
In addition to supplying the Kinyerezi power plants, TPDC now serves several industries, including the Dangote cement factory.
Mkude said that as the network expands, more industries are transitioning to natural gas, and the uptake of CNG for transport has surged, particularly amid global oil price instability caused by the Russia-Ukraine conflict.
“Industrial gas usage will continue to bolster government revenue, as factories, Bajaj operators, and other transport services rely on it daily. Wider CNG adoption also helps protect Tanzania’s foreign exchange reserves by reducing dependence on imported petroleum products,” he said.
He further noted that the use of CNG is expanding from Bajaj riders to private car owners and, more recently, the Bus Rapid Transit (BRT) system.
He stressed that the forthcoming Liquefied Natural Gas (LNG) project will be a major economic milestone, allowing Tanzania to export large volumes and earn significant foreign exchange.
Transport operator Ali Juma, who drives for Bolt, said the savings are undeniable. One kilogram of CNG costs about Sh1,550, meaning a 15-kg refill costs roughly Sh23,000.
In comparison, a litre of petrol goes for around Sh2,752, depending on the location. He added that long queues are no longer a major concern due to the growing number of CNG stations across Dar es Salaam.
Resident Susan John of Malalkuwa said piped gas allows families to buy only what they need, similar to prepaid electricity, helping them avoid the financial burden of rising gas cylinder prices.
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