Privately owned liquefied petroleum gas (LPG) shipper Petredec has announced plans to build Tanzania’s first large-scale, open-access LPG terminal at Tanga Bay, in partnership with Tanzanian conglomerate ASAS Group of Companies.

The project will be the East African country’s first terminal capable of handling Very Large Gas Carriers (VLGCs). Construction is expected to begin in the coming weeks, with completion targeted by the end of 2027.

The terminal, to be developed on a 26-hectare site in Chongoleani, in the Tanga Region, will include six mounded storage spheres with a total capacity of 40,000 cubic metres in its first phase. It will also feature a 2.8-kilometre underwater pipeline to enable direct ship-to-shore offloading. Petredec said the facility will improve energy distribution and ease reliance on the congested Tanzanian port of Dar es Salaam.

The initiative supports President Samia Suluhu Hassan’s clean energy push by improving the availability and affordability of LPG across Tanzania.

The terminal reflects a broader shift across East Africa as governments invest in infrastructure to expand access to clean fuels. According to the World Bank, only 5% of Tanzania’s rural population had access to clean cooking fuels as of 2022. The Tanga LPG Terminal is expected to help bridge this gap while supporting United Nations Sustainable Development Goal 7 on affordable and clean energy.

“History has proven that large-scale infrastructure is the indispensable key to the reliable and competitive supply of LPG,” said Jonathan Fancher, chief executive of Petredec Global. “We are once again proud to contribute to the region’s development and are confident that the Tanga LPG Terminal will be instrumental in helping establish Tanzania as a prominent clean energy hub in the wider East African region.”

Doto Mashaka Biteko, Tanzania’s deputy prime minister and minister for energy, said: “Accelerating the next phase of growth is vital for LPG to truly reach all parts of our country and beyond.”

Founded in 1980 and headquartered in Singapore, Petredec operates one of the world’s largest VLGC fleets. In 2023, it partnered with South Africa’s Transnet to develop an LPG rail and storage hub in Gauteng.

The shift towards LPG is also being pursued by other private players in East Africa. As bne IntelliNews reported, Nairobi-based Gasfil is investing in infrastructure and partnerships aimed at promoting cleaner fuel alternatives, particularly LPG, to reduce dependence on petrol and diesel in countries like Kenya, Uganda and Tanzania.