Tanzania Petroleum Development Corporation (TPDC) has signed a memorandum of understanding with Energetech-Tantel Holdings to launch nationwide natural gas distribution via road and rail, Daily News reported.

The rollout, expected within 12 months, will initially cover Dodoma, Geita, Mwanza and Kigoma. Commissioner for Petroleum and Gas at the Ministry of Energy, Goodluck Shirima, said the first deliveries are expected around a year from the date of signing.

“The project will help supply gas to the country’s capital Dodoma, as well as key production areas in the central regions which have shown high gas demand,” he said as quoted by Daily News at a press briefing in Dar es Salaam.

Energetech-Tantel president and CEO Daniel Gabai said the investment will range from $80mn to $200mn.

“We believe Tanzania will become a leading force for growth in Africa over the next decade and this project will be the most efficient clean energy project on the continent, serving both local and regional markets,” he is quoted by Daily News as saying.

TPDC managing director Mussa Makame said the deal will enhance bulk gas transportation. “Accelerating gas production with a commercial focus and involving the private sector is key to our strategy,” he said.

Tanzania holds an estimated 57.5 trillion cubic feet of recoverable natural gas—mostly offshore—according to the U.S. Energy Information Administration (EIA). The country has so far limited piped gas access to Lindi, Mtwara, Coast and Dar es Salaam. The new project is part of the government’s broader industrialisation drive and aims to cut fuel imports by scaling up domestic supply to inland and industrial regions.

The plan includes building gas receiving centres and supplying homes, vehicles and industries along the central corridor. TPDC, a state-owned firm under the Ministry of Energy, oversees exploration and commercialisation of petroleum resources.

Energetech-Tantel is a clean energy investment and infrastructure company focused on developing natural gas and renewable energy solutions across Africa.

As bne IntelliNews reported, TPDC, in partnership with the Zanzibar Petroleum Development Company (ZPDC), recently began preliminary gas exploration on Pemba Island to assess its commercial potential.