The expanding role of CNG in Dar’s transport sector

This development highlights the increasing demand for a more environmentally friendly and cost-effective fuel alternative for motorists in Tanzania.

The recently launched CNG station, supplied with Natural Gas from the Songo Songo gas field operated by PanAfrican Energy Tanzania (PAET), is capable of servicing up to 800 vehicles each day.

This new station is essential in offering this vital service to customers, presenting a cost-efficient substitute during times of escalating living costs. The city had only two other CNG stations before, so the addition of a third one is beneficial.

All three stations use Songo Songo Natural Gas supplied by PanAfrican Energy Tanzania. There is no other gas producer in the country that offers the public the direct advantages of Tanzania’s abundant natural resources in such a way.

The use of CNG as a fuel for vehicles is gaining popularity among individuals and businesses in Tanzania, seeking to lessen their environmental footprint and reduce operational costs. Commercial taxi operators in Dar es Salaam have seen substantial benefits from this transition.

Currently, over 3,000 vehicles are currently using CNG.

Speaking of the benefits of CNG, Said Nsubuga, an Uber driver in the city said, “The cost of running my car on CNG is far lower than using petrol.

For example, the cost of 3 kilos of CNG is equivalent to the cost of 1 litre of petrol and a kilo of gas will get me 25km while a litre of petrol only gets me 12 kilometres.”  A quick calculation indicates the cost of conventional fuels compared to CNG needed in this scenario to travel the same distance, is around 440 percent or over four times more expensive for drivers.

In addition to the economic advantages, CNG offers notable benefits for engine maintenance and wear and tear.

The cleaner combustion of CNG results in reduced carbon deposits and contaminants in the engine, leading to lower maintenance costs and longer engine life. Tanzanian drivers embracing CNG not only experience financial benefits but also enjoy the peace of mind that comes with decreased wear and tear on their vehicles.

This was clear to Said Nsubuga who also spoke about the longer-term benefits of CNG, stating “When I was using petrol, I had to service my car every 3,000 kilometres, but now that I have switched to CNG I drive more than that between service requirements.”

Of course, there is a cost to being able to utilise CNG, but it is not as much as people may think, with the cost of engine conversion being around 1.8mn/-.  Depending on how far users will drive each month however, these costs are quickly set-off against the fuel savings. 

For example, using Said’s example, if an average driver drives 1,000km per month, they might use around 83 litres of petrol, costing around 273,000/-.  To achieve the same distances using CNG, Said would spend around 62,000/-.  Each month he would save around 210,000/-, meaning the cost of converting his vehicle might be regained within 8 – 10 months.

Speaking about his experience converting his vehicle to use CNG, one driver said, “The conversion process takes two days and costs between 1.8mn/- and 2mn/-, which you can pay in installments.

There is a conversion centre at the Dar es Salaam Institute of Technology, but the staff at the PAET’s CNG station are also willing to direct drivers to other centres, so it is not a problem finding places to do the conversion if anyone is considering it.” Currently the number of conversion centres is growing with several offering flexible financing options.

  While both petrol and diesel vehicles can technically be converted to run on CNG, in Tanzania, currently only conversion centres for petrol engine vehicles are available.

If the economics of using CNG are hard to believe, the facts on the ground speak for themselves.  The first CNG station in Dar es Salaam operated by PAET was established as a pilot program in 2009, and today delivers over 8,000 Kg of CNG to approximately 900 cars each day.  Over the past three years alone, PAET has seen delivery increase from just over 30,000 Kg per month to over 250,000 Kg per month.

As the demand for CNG continues to grow, it is encouraging to observe a positive trend in consumer behaviour towards greener alternatives.

The inauguration of a third CNG station signifies that Dar es Salaam is on the right track towards creating a sustainable and eco-friendly transportation system.  This shows a strong indication of the government’s commitment to cleaner energy and the positive collaboration between the Government, private sector, and stakeholders.

Looking ahead, it is essential that we continue to back and invest in initiatives that promote sustainable practices. CNG stands as an excellent example of how innovation in the energy sector can be beneficial for Tanzania and its people.