THE government has contracted Rashal Energies to construct a gas pipeline from Kisemvule in Coast Region to Mbagala on the outer reaches of the city of Dar es Salaam to supply compressed natural gas (CNG) to refuelling stations.

The pipeline shortens the time for tankers to collect the gas from the main CNG depot Kisemvule, built in 2018, in the wake of a meeting between Dr. Doto Biteko, the deputy premier who is also Energy minister, with Rashal Energies CEO Farhiya Warsame.

A ministerial statement said yesterday that the two discussed the project and the benefits it will bring to the public as the pipeline, once completed, will enhance access to affordable and cleaner energy, reducing reliance on traditional fuels like petrol and diesel.

At the meeting, the senior minister highlighted the government's commitment to developing a vast network of gas pipelines and refuelling stations to provide easy access to CNG for vehicles and industries, expressing the government’s readiness to cooperate with companies interested in investing in this essential service.

The CEO appreciated the government’s guidance and support on the matter, pointing at considerable progress in initiating the construction of the pipeline. Public interest in using natural gas as a fuel alternative has been growing, driven by its lower cost and environmental benefits compared to conventional fuels, she stated.

The project is part of a broader initiative to transform the energy landscape, with a focus on sustainable solutions that support economic growth and reduce carbon emissions, the statement noted, affirming that the meeting took place on the side lines of the East African Petroleum Conference and Exhibition (EAPCE’25), held across three days in the city.

It said the government's goal is to establish an extensive network of gas pipelines and CNG refuelling stations, thus underlying its readiness to offer cooperation to companies looking to invest in providing these services to the public.

The CEO was happy that ministerial guidance has enabled the company to begin implementing the project, it stated, highlighting that the deputy premier also met with Nick Lenstra, director of the Canadian firm Rock Mountain, which has a memorandum of understanding with the Tanzania Petroleum Development Corporation (TPDC) to begin feasibility studies.

The project will involve engaging with local stakeholders, including the Tanzania Airports Authority (TAA), to explore the use of natural gas in producing liquid energy for use in aircraft, the statement indicated.

Similarly, the senior minister met with Wang Juteng, vice president of the Uganda branch of the Chinese oil firm CNOOC. In addition to discussing the oil and gas sector, the firm was invited to participate in the fifth round of oil and gas block licensing in Tanzania, it added.