GLOBAL liquefied petroleum gas (LPG) leader Petredec, in collaboration with the locally based Asas Group of Companies have teamed up to create a regional hub for clean energy distribution, with the launch of an ambitious Tanga LPG terminal.

Jonathan Fancher, CEO of Petredec Global, hailed the terminal as a game-changer for regional energy logistics, asserting that history has proven that large-scale infrastructure is an indispensable key to the reliable and competitive supply of LPG.

In remarks at the launch yesterday in Tanga, he said that the company is proud to contribute to the region’s development, confident that the Tanga LPG terminal will be instrumental in setting up the locality as a prominent clean energy hub in the wider East Africa region.

Dr Doto Biteko, the deputy prime minister and Energy minister, lauded the Petredec investment as timely and impactful.

“In line with the government’s objective of increasing access to clean cooking for all Tanzanians, we are pleased to welcome Petredec as an investor in the LPG sector,” he declared.

Accelerating the next phase of growth is vital for LPG to truly reach all parts of our country and beyond, he said, noting that adding more import capacity is an important step towards realising expansion plans for this energy solution.

The multi-million-dollar project is a major leap forward in advancing Tanzania’s energy security and clean cooking agenda initiated by President Samia Suluhu Hassan, he said.

Strategically located on a 26-hectare site at Chongoleani, Tanga Bay, the terminal will serve as a critical gateway for LPG imports into Tanzania, with considerable potential for neighbouring countries to adopt the terminal as a major source of supplies.

In its wider design, the terminal will boast six advanced mounded storage spheres with a collective capacity of 40,000 cubic metres in its first phase, along with eight truck loading gantries and a 2.8-kilometre underwater pipeline.

The facility will also be capable of handling very large gas carriers (VLGCs), a feat that current Tanzanian ports are unable to achieve, thus reducing workload for the congested port of Dar es Salaam.

The project is aligned with the government’s goal to increase access to clean cooking solutions and reduce reliance on traditional biomass fuels, which remain widespread across rural areas and contribute heavily to deforestation, the investor affirmed.

Government support for the terminal has been robust, he said, noting that with the demand for LPG rising sharply across East Africa, particularly in urban and peri-urban areas, the Tanga LPG terminal resets the picture.

It is expected to not only stabilise supply but also improve affordability and reliability, key factors in driving household adoption of clean energy, he said.

The open-access set up of the terminal will enable multiple operators to benefit, fostering a competitive market that encourages innovation and reduces consumer prices, he explained.

Naif Jaffer Abri, CEO of the ASAS Group, emphasised the significance of the partnership with Petredec in delivering a transformative energy solution.

The terminal project stands as a powerful example of how two major companies can successfully unite their local and international strengths to bring to life a meaningful and inspiring project, he stated.

It will leave a lasting mark on the local energy sector, promising expanded access to clean cooking for households across the country, he asserted, underlining that LPG is widely recognised as the most practical and immediate clean cooking solution available for off-grid communities.

“This makes up the majority of East African populations needing to use the cleaner-burning, efficient fuel, while LPG also offers a path toward reducing harmful indoor air pollution, improving public health particularly for women and children,” he said.

Having completed the access road and awarded the engineering, procurement and construction (EPC) contract, Petredec and ASAS are preparing to break ground on full-scale construction in the coming weeks.

The facility is scheduled to be completed by the end of 2027, after which it will become a central player in the supply and distribution of LPG throughout Tanzania and the broader region.

The terminal is not just a major infrastructure development — it represents a decisive step toward realising Tanzania’s energy transition ambitions, providing a foundation for economic growth, industrial development and improved quality of life for millions of citizens, the beaming executive asserted.

The deputy premier who stood in for President Samia Suluhu Hassan at the launch, praised Petredec and ASAS for their significant investment, underlining that the launch of the new terminal serves us clear proof that Tanzania is a safe and attractive destination for investment.

It offers both returns for investors and broader economic benefits for the country, he said, explaining that for years, total investment in the energy sector had not exceeded $500m but the $100m investment has reshaped that situation.

With the government having set out $4bn as optimal private sector investments in the clean cooking energy transition, the project has injected $100m and the government is now working to attract $3.9bn from other investors, he said.

Employment potential for the investment is projected at 2,000 jobs, a portion of the 320,000 jobs projection that the energy sector projected to create via the clean cooking energy access projects, he said.

He pointed at the importance of accelerating the next phase of expansion so that LPG can reach more areas across the country, noting that holding capacity if crucial toward achieving broader national goals for clean energy access.

With demand for LPG rapidly rising in both urban and peri-urban areas across East Africa, the newly launched Tanga LPG terminal is expected to play a key role in stabilizing supply, improving pricing, and enhancing availability—factors critical to increasing household adoption of clean energy.

The terminal’s capacity to serve a wide range of users is also expected to open up a competitive market, stimulate innovation, and drive down consumer prices, ultimately making clean energy more accessible to all, officials noted.