Dar es Salaam goes green with compressed natural gas

As fuel costs rise, Tanzania is taking the lead in East Africa's transition to compressed natural gas (CNG) as a cleaner and more affordable alternative for transportation. With abundant natural gas reserves and a focus on infrastructure development, the country is paving the way for a greener, more sustainable energy future. CNBC Africa's Ericks Shyaka recently sat down with Amr Ismail Aboushady, representing TAQA Dalbit, a joint venture promoting the CNG market and business in Tanzania. TAQA Dalbit, a collaboration between TAQA Arabia and JCG Partnership, has made significant strides in introducing CNG to the transportation sector in Tanzania. Aboushady highlighted that the CNG market in Tanzania is still in its early stages, with only an estimated 5,000 cars currently running on CNG and just three filling stations across the country. However, TAQA Dalbit has been instrumental in spearheading the market development by establishing the first integrated CNG station and conversion center in the country. This one-stop solution allows customers to convert, inspect, and fill their vehicles with CNG, offering a convenient and efficient service. Initially, there were challenges in educating customers about the benefits of CNG, as there was a misconception that gas referred to Liquefied Petroleum Gas (LPG). However, with Tanzania's abundant natural gas resources, CNG proves to be a more cost-effective and environmentally friendly option as it is domestically sourced and does not contain any other fuel products. TAQA Dalbit's integrated approach has garnered a positive response from clients, with the company currently serving over 1,600 customers per day at their airport station. In line with the global trend towards cleaner energy sources, TAQA Dalbit is capitalizing on the growing demand for sustainable energy solutions. Aboushady emphasized the company's commitment to providing affordable, reliable, and clean energy while supporting government initiatives to protect the environment. With plans to develop and operate 12 filling stations and conversion centers in Dar es Salaam and neighboring cities, TAQA Dalbit is set to invest around $10 million in expanding its CNG infrastructure. Despite concerns over natural gas allocations for power generation, Aboushady reassured that Tanzania's ample reserves and ongoing exploration efforts at Mnazi Bay will ensure sufficient gas supply for the transportation sector. The collaboration with TPDC (Tanzania Petroleum Development Corporation) and increased exploration activities further strengthen the country's gas availability, making it a viable and sustainable energy source for the transportation sector. As Tanzania continues to champion the shift to CNG and promote a greener energy future, TAQA Dalbit's initiatives and investments are poised to drive the adoption of compressed natural gas in the region, setting a precedent for sustainable transportation solutions in East Africa.