The Energy and Water Utilities Regulatory Authority (EWURA) has granted 10 permits for the construction of ten Compressed Natural Gas (CNG) stations across Dar es Salaam, Coast, and Morogoro regions, underscoring Tanzania’s accelerating transition toward affordable and cleaner energy alternatives.
As of April 2025, according to a recent energy budget estimates 2025/26, the approvals include major infrastructure investments by Puma Energy Tanzania Limited, which will establish a central "Mother Station" at Tegeta and a "Daughter Station" at the Alliance One factory in Morogoro.
Other permit holders include Energo Tanzania Limited (Mikocheni), Victoria Service Station Limited (Kipawa), Rafiki CNG Station (Tabata Relini), Tanzania States Natural Gas Holdings Company Limited (Goba), and Puma Energy (Mbezi Beach 91 and Ubungo External), as well as Natenergy (Kigamboni). Additionally, EWURA approved the construction of a CNG receiving facility for Kinglion Factory in Kibaha.
In a further boost to the sector, EWURA issued five operating licenses to Tembo Energy (Tabata), Tanzania Petroleum Development Corporation—TPDC (Mlimani), TAQA Dalbit (Sam Nujoma), and Rafiki CNG Station (Tabata), along with a CNG supply license to Tan Health Limited for transportation and distribution of the gas.
The growing interest in CNG is driven by rising fuel costs, increased public awareness, and the government’s strategic push for cleaner energy.
According to EWURA, the number of operational CNG stations has increased from just two in the 2020/21 financial year to nine by April 2025.
The government aims to establish 7,620 CNG stations by June 2026 as part of its long-term energy diversification strategy.
EWURA continues to play a regulatory role by inspecting infrastructure related to processing, transportation, and distribution of natural gas, including vehicle refueling stations in the regions of Mtwara, Lindi, Coast, and Dar es Salaam.
The recently released Natural Gas Sub-Sector Regulatory Performance Report for the year ending June 30, 2024, shows that CNG production surged by 46%—from 4.98 million kilograms in FY 2022/23 to 7.27 million kilograms in FY 2023/24.
This increase is largely attributed to the growing demand for CNG from both vehicles and industrial users, particularly those located outside the pipeline grid who are now being served through “virtual pipelines.”
The number of CNG mother stations doubled in the review period—from two (PAET Ubungo and Dangote Mtwara) to four—with the addition of newly operational stations at Dangote Mkuranga and TAQA Airport.
The introduction of the Mkuranga station led to a 31% decrease in output from the Mtwara station, as the two now complement each other in meeting demand.
CNG consumption by vehicles reached 5.66 million kilograms in FY 2023/24—equivalent to 78% of total production—marking a 75% jump from the 3.24 million kilograms recorded the previous year.
The remaining 22% of the gas was distributed to industrial (20%) and commercial (2%) customers through virtual pipelines.
Refueling frequency has grown exponentially, with 700,389 vehicle refueling events recorded in FY 2023/24—up from 178,773 in the previous year and just 73,659 the year before.
On average, around 1,919 CNG vehicles are now refueled per day, nearly four times the 490 daily average recorded in FY 2022/23.
The rise is attributed to the increasing number of CNG-powered vehicles, including imported tricycles (Bajajs), and the expansion of CNG refueling infrastructure.
Beyond vehicle use, CNG is also supplied to commercial and industrial establishments, including Serena Hotel and Mikoani Edible Oil in Dar es Salaam, and Global Aluminum in Kibaha.
ANRIC began supplying CNG to Global Aluminum in January 2024, using the virtual pipeline model.
In total, non-vehicle CNG consumption stood at over 1.6 million kilograms during FY 2023/24.
Several studies indicate that using CNG can result in fuel cost savings ranging between 40% and 60% compared to conventional fuels like petrol and diesel, making it a financially and environmentally attractive option for Tanzanians.