Inadequate filling stations slow CNG adoption

The government approved the establishment of the CNG initiative on November, 2023 by TAQA Dalbit, targeting over 800 CNG-enabled vehicles. The station, located at the Pugu Road-Airport Area in Dar es Salaam, includes a conversion centre capable of converting 1,000 vehicles per year.

The “Master Gas” CNG filling station, the first of 12 planned stations, boasts a capacity of 11,000 KG of CNG, which are insufficient compared to the consumers. 

The initiative by TAQA Dalbit seeks to strengthen in-country manufacturing, local assembly, and expansive job creation in line with the presidential directive.

However, stakeholders in the petroleum and transport sectors lament that the absence of the needed CNG stations is frustrating the government initiative and stalling the massive roll-out and use of CNG-powered buses.

An insider in the Tanzanian Upstream Petroleum Regulatory Authority, who is not authorised to comment on the issue, in an interview with Business Insider, however, notes that the government is making efforts to encourage and support the establishment of CNG stations.

He says that the regulatory framework for CNG is designed to ensure the safety of consumers and promote fair competition.

Industry-watchers say diversification will be the key to survival in the decades to come, with the Dodoma government mandating that all new cars and light-duty trucks sold in the country be zero-emission vehicles.

While some individuals and businesses welcome the opportunity to contribute to cleaner air and reduce costs and emissions, others express concerns about the accessibility of refilling stations and the overall feasibility of the transition.

Drivers, commuters, and major gas marketers confirm that a major hindrance to the CNG-powered bus initiative was the absence of the needed stations.

They also call on the urgent need for a robust network of CNG stations to support the adoption of natural gas as a cleaner and more sustainable alternative to conventional fuels for vehicles.

The drivers, commuters, and gas marketers in separate interviews with The Business Insider state that despite Tanzania’s abundant natural gas reserves, the lack of sufficient filling infrastructure had been restricting the accessibility and viability of CNG-powered vehicles.

A CNG-powered commercial three-wheel (Bajaj) driver on the Nyerere Expressway, Yahaya Rwezahura, notes: “I was initially sceptical about the use of CNG due to the upfront cost of converting my vehicle. However, the fuel savings and the smoother engine performance convinced me of its benefits.”

“I hope more CNG filling stations will be established across the country to make it more convenient for drivers like me.”

A CNG-powered taxi driver, Suleiman Abubakar, clarifies that CNG has significantly lowered my operating costs.

“With the rising fuel price, it is a relief to have a more affordable option. I believe as more drivers make the switch, it will not only benefit us but also contribute to a cleaner environment.”

Pakinam Kafafi, CEO of TAQA Arabia highlights that,

“CNG is on average 50 per cent cheaper for consumers than liquid fuel and significantly cleaner. Vehicles powered by CNG emit about 25 per cent less CO2, contributing to Tanzania’s consumption of clean, and environmentally friendly energy.”

She affirms TAQA Arabia’s commitment to providing effective, efficient, and sustainable energy solutions to support Tanzania’s energy needs.

Deputy Prime Minister and Minister for Energy, Doto Biteko points out that with the dedication and foresight of industry leaders like TAQA Dalbit, Tanzania is ushering in an era of sustainable energy solutions.

“The new CNG Filling Station and Conversion Centre is a monumental achievement by TAQA Dalbit, demonstrating our nation’s technological prowess and commitment to a sustainable, greener, and economically efficient future,” Biteko says.

Rikin Shah, Group CEO of JCG underscores that the provision of a combination of natural gas and traditional fuels aligns with their vision of building a sustainable future.

Shah states that, “Natural gas is a more sustainable alternative energy source compared to petrol and diesel.”

TAQA Arabia, a leading energy provider with a strong presence in Egypt and the MENA Region, serves over 1.7 million clients with natural gas, electricity, renewable energy, petroleum products, and water. Through its subsidiary “Master Gas,” TAQA Arabia operates numerous CNG stations and conversion centres, providing energy solutions across Egypt and the region.

JCG, a group with a legacy spanning over 38 years, operates across East, Central, and Southern Africa, the United Arab Emirates, and Europe. JCG Oil & Gas, a subsidiary of JCG, is a key player in the joint venture with TAQA Arabia to form TAQA Dalbit, contributing to the development of Tanzania’s energy sector.

With the dedication and foresight of industry leaders like TAQA Dalbit, we are ushering in an era of sustainable energy solutions. The new CNG Filling Station and Conversion Center is a monumental achievement by TAQA Dalbit, demonstrating our nation’s technological prowess and commitment to an sustainable, greener, and economically efficient future.

With TAQA Dalbit’s plans to deploy 12 more stations in the coming years, CNG is poised to play a major role in Tanzania’s energy future.