Tanzania's New TZS 13 Billion Energy Hub Challenges Africa's Infrastructure Record

Puma Energy Tanzania has officially commissioned a new compressed natural gas (CNG) mother station in the Salasala area of Dar es Salaam, representing a major addition to the country’s energy infrastructure. The facility, which carries a construction cost of approximately TZS 13 billion, has been identified by officials as one of the largest and most technically advanced CNG hubs on the continent.

The inauguration was led by the Minister of Finance, Dr. Mwigulu Nchemba, on behalf of the government on Monday, February 9, 2026. The completion of this project is a core component of the Sixth Phase Government’s strategy to utilize domestic natural gas reserves to reduce the national dependency on imported petroleum products. During the ceremony, Dr. Nchemba noted that the facility aligns with the Tanzania Development Vision 2050, emphasizing that the expansion of the natural gas network is a prerequisite for lowering energy costs for both industrial and domestic consumers.

Structurally, the Salasala hub serves as a "mother station," a designation that distinguishes it from standard retail outlets. While it provides direct refueling for light vehicles, heavy-duty trucks, and public transport buses, its primary function is to act as a distribution point for "daughter stations." These satellite locations, which may not be connected to the main gas pipeline, will receive supply via specialized mobile tube trailers filled at the Salasala hub. This logistical model is intended to overcome the geographical limitations of fixed pipeline infrastructure.

The commissioning comes at a time of rapid growth in Tanzania's natural gas sector. Recent data indicates that the number of CNG-powered vehicles in the country has surpassed 15,000, up from just over 1,000 in 2022. To support this demand, the Ministry of Energy has been directed to accelerate the rollout of similar infrastructure, with the government aiming to increase the total number of operational stations to 20 by June 2026. Current coverage remains concentrated in Dar es Salaam, Mtwara, and the Coast Region.

Puma Energy Tanzania Managing Director Fatma Abdallah stated that the investment reflects the company’s long-term strategy to diversify its energy portfolio within the Tanzanian market. The company has invested over $24 million into its broader CNG infrastructure plan, which includes the development of additional facilities in Morogoro and along key transport corridors to Dodoma.

Government officials also highlighted the economic implications of the project. By shifting a portion of the transport sector to domestic natural gas, the government expects to see a reduction in the expenditure of foreign exchange currently used for fuel imports. Sector estimates suggest that motorists switching to CNG can realize fuel cost savings of up to 50 percent compared to petrol or diesel.

The Ministry of Energy is now tasked with intensifying exploration and distribution efforts to ensure that the capacity provided by the new hub can be fully utilized. As part of this expansion, authorities are encouraging further private sector participation to establish conversion workshops and retail points in regions currently underserved by the gas grid.