• Tanzania to host investor talks on expanding CNG infrastructure
• Government aims to boost CNG use, cut fuel costs
• Nigeria's CNG success cited as potential model for Tanzania

Tanzania’s Deputy Minister of Energy, James Mataragio, announced on Friday that the country will host a national meeting with investors, banks, and regulators to address financial barriers hindering the construction of compressed natural gas (CNG) fueling stations. The government's goal is to make CNG more accessible as a cheaper alternative to gasoline.

Mataragio said the government wants to reassure investors that CNG is a viable sector and its costs are manageable with sufficient funding. As local banks become more open to financing the CNG sector, private investment is ramping up. BQ Construction plans a station for 180 vehicles per day, while Puma Energy announced in June its intent to launch four CNG stations within the next three months.

Nigeria’s experience highlights CNG's potential to transform an energy market. As Africa's top oil producer with vast gas reserves, Nigeria has drawn $700 million in investments this year to make CNG an alternative to gasoline, which now costs over 900 naira ($0.59) per liter. A government policy that sets CNG’s price at 230 naira ($0.15) has drastically lowered transportation costs and promoted vehicle conversions. Authorities hope to have one million CNG-powered vehicles by 2027, with more than 90 fueling stations under development, supported by companies like Shell Nigeria Gas and NNPC Gas Marketing.

If Tanzania adopts a similar plan, fuel prices could drop significantly. For the Tanzanian government, however, the effort goes beyond simply cutting fuel costs. It's also about preparing for a broader energy transition. Developing its offshore gas resources could boost national energy security and establish the country as a regional gas player. The government also wants to follow a low-carbon path. A study by Dairy Hills indicates that CNG can cut energy costs by as much as 58%. But as Nigeria’s model demonstrates, developing a robust CNG sector requires suitable infrastructure, skilled professionals for vehicle conversions, and an appealing investment environment.

Olivier de Souza