Do You Value Local Content Partnerships? Key Opportunities that Emerged For Foreign Oil and Gas Companies in Tanzania.
Do you value local content partnerships? This is the critical question for international investors looking for opportunities in Tanzania’s energy sector. That should be your selling point because your target clients and regulators care about that.
If your answer to the above question is YES, then are visible investment opportunities in the energy sector in Tanzania.
- Investing in Increasing LPG penetration and LPG facilities.
Before 2005, Tanzania was slow to develop in terms of LPG growth. The LPG was used relatively exclusively by wealthy families and restaurant owners.
But with a favorable fiscal environment, even pre-urban households are adopting LPG. Tanzania’s annual LP gas consumption grew from 5,500 metric tonnes in 2005 to 248,800 metric tonnes in 2021. Based on demand projections, LPG consumption will be about 450,000MT in 2028. This is rapid growth. With this accelerated LPG growth, more than existing LPG facilities will be required for the expected LPG distribution demand in Tanzania in the coming years. Opportunities range from setting up LPG refilling and cylinder manufacturing plants and investing in bulk LPG trucks/tankers.
2. Investing in Compressed natural gas(CNG) infrastructure. With abundant natural gas in Tanzania and increasing petrol and diesel prices, CNG infrastructures present a good opportunity for an investor
3. Petrol Station Facilities.
There has been an increase in petrol and diesel use in Tannzania. The rising demand for petrol and diesel is in line with increasing urbanization and industrialization in our country. As our economy urbanizes, car ownership rises, and much fuel is required to power vehicles. With the right location, a new investor can get a fast return through increasing consumption of petrol and diesel in Tanzania.
I hope this helps.
