Petredec set to construct Tanga LPG terminal in Tanzania

Singapore-based integrated LPG company Petredec is set to begin the construction of Tanzania’s Tanga LPG terminal – slated to be the largest LPG facility in the world once completed, according to Energy Capital & Power.

The new facility will be erected in partnership with Tanzanian LPG major ASA Group of Companies, with construction itself scheduled to begin in the next few weeks. Provided the project can stay on schedule, production is expected to begin in 2027.

Located in Tanzania’s Tanga Bay, the new terminal will contain six mounded LPG storage spheres with a total capacity of 40,000 cubic metres; a 2.8km-long underwater pipeline; and eight gantries for the loading of trucks. Moreover, the facility will also be able to host Very Large Gas Carriers (VLGC) – ships that are currently unable to dock at any of Tanzania’s existing ports.

Upon completion, the terminal is expected to become a regional LPG hub, fitting neatly within Tanzania’s goal to increase LPG production and distribution in a bid to reduce its reliance on more polluting fuels currently used for cooking such as firewood and charcoal. Furthermore, the introduction of a new large-scale LPG terminal will also allow for the monetisation of domestic gas resources – something that the country has not been able to do extensively as of yet.

Regarding the project, Tanzania’s deputy prime minister and minister for energy Doto Mashaka Biteko said: ““In line with our aims to increase access to clean cooking for all Tanzanians, we are pleased to welcome Petredec as an investor in the LPG sector and look forward to seeing the impact their terminal will make on an already-growing market”. He added that accelerating the next phase of growth was “vital for LPG to truly reach all parts of our country and beyond”.

Petredec CEO Jonathan Fancher noted that the Tanga LPG terminal would be “instrumental in helping establish Tanzania as a prominent clean energy hub in the wider East African region”.