LPG Projects to Watch in Africa

Africa’s LPG market is on track for rapid growth in the coming years, driven by rising demand for cleaner, more reliable cooking and heating solutions. Analytics agency S&P Global Commodity Insights projects that with over 90% of households still relying on biomass, the continent could expand its LPG use three to five times by 2030. Achieving universal access to clean cooking by 2030 will require transitioning more than 405 million people to LPG, underscoring the importance of major infrastructure developments across the continent

Tanga LPG Terminal, Tanzania

Integrated LPG company Petredec has commenced construction of the Tanga LPG terminal in Tanzania, set to become the largest facility of its kind in the country. Developed in partnership with Tanzanian conglomerate ASAS Group of Companies, construction is scheduled to begin in the coming weeks, with production targeted for 2027. Located in Tanga Bay, the terminal will feature six mounded storage spheres with a total capacity of 40,000 cubic meters, eight loading gantries and a 2.8-km underwater pipeline. Designed to accommodate very large gas carriers, the project aims to establish a regional LPG hub, support clean cooking initiatives and monetize domestic gas resources.

LPG Cylinder Manufacturing Plant, Uganda

Uganda’s Ministry of Energy and Mineral Development recently signed an agreement with Dubai-based firm Global Gases to develop an LPG cylinder manufacturing plant, alongside multiple filling stations and distribution centers. Aiming to locally produce and distribute 500,000 LPG-filled cylinders by Q3 of the 2025/2026 financial year, the initiative targets a major boost in household LPG use, which currently stands below 1% due to limited infrastructure. The project supports national goals to reduce biomass reliance from 88% to 50% by this year.

LPG Storage and Bottling Facility, Kenya

Kenya is in advanced talks with downstream company Asharami Synergy to jointly develop a 30,000-ton LPG storage and bottling facility in Mombasa – set to become East Africa’s largest. The joint venture with the country’s state-owned Kenya Pipeline Company, aims to accelerate Kenya’s efforts toward achieving universal access to clean cooking energy by 2030.

LPG Rail Freight Project, South Africa

Last year, Petredec and South Africa’s state-owned Transnet announced a major LPG rail freight project, featuring the country’s first scheduled LPG train system and a new intermodal storage hub in Gauteng. Each 75-wagon train will transport over 2,500 tons of LPG, with up to three trips per week, improving distribution efficiency across South Africa and the broader Southern African Development Community region. Set to begin operations in the first half of 2028, the project positions South Arica as a major player in bulk LPG transport, offering a scalable model for cleaner energy access across sub-Saharan Africa.