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Tanzania Expands Clean Energy Infrastructure with $50M LPG Storage Facility

Tanzania Expands Clean Energy Infrastructure with $50M LPG Storage Facility

On March 1, 2025, Tanzanian President Samia Suluhu Hassan laid the foundation stone for a $50 million liquefied petroleum gas (LPG) storage facility in Tanga, marking a significant milestone in the country’s efforts to transition towards clean and sustainable energy solutions.

Advancing Tanzania’s Clean Cooking Energy Strategy

Developed by GBP Tanzania, the project aligns with the National Clean Cooking Energy Strategy, which aims to reduce reliance on traditional fuels, enhance access to affordable energy, and modernize the energy sector. The new LPG storage facility will strengthen Tanzania’s energy security by ensuring a steady supply of clean cooking fuel, helping to curb deforestation and health hazards associated with wood and charcoal usage.

Speaking at the event, President Hassan emphasized Tanzania’s commitment to fostering a business-friendly environment for investors.

“Tanzania is open for investment, Tanzania is safe for investment, and Tanzania’s investment policies are friendly and sustainable,” she stated.

The President further noted that the LPG storage facility is a key investment in the country’s growing energy infrastructure, supporting the government’s broader economic vision of attracting private sector participation to drive sustainable development.

Boosting Energy Security and Economic Growth

The $50 million investment will establish a high-capacity LPG storage facility, ensuring a consistent fuel supply to meet rising domestic demand. The project is expected to:

• Create Jobs: Generate employment opportunities in construction, logistics, and energy distribution.

• Improve Energy Security: Reduce dependence on imported petroleum products and unreliable fuel sources.

• Support Economic Growth: Strengthen trade and investment in Tanzania’s energy sector.

Tanga’s Strategic Role in Tanzania’s Economic Growth

The facility’s location in Tanga City is of strategic importance due to the city’s port infrastructure. The Port of Tangahas undergone a TZS 429 billion ($165 million) modernization, increasing its cargo-handling capacity from 400,000 tonnes to over 1.2 million tonnes annually.

President Hassan also announced future plans to transform Tanga Port into a specialized hub for handling fertilizers and agricultural products, reinforcing its role as a key trade gateway in East Africa.

A Future Powered by Clean Energy

The National Clean Cooking Energy Strategy is a cornerstone initiative aimed at reducing environmental degradation, improving public health, and promoting renewable energy adoption. This project is a major step towards achieving universal access to clean cooking energy, reinforcing Tanzania’s leadership in sustainable energy transformation across Africa.

See Also

Further Africa

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