Currently, five major suppliers of gas share the market namely BP Gas, Oryx Gas, Alpha, Mohan Gas and Pan African/TPDC which is piloting the bottling and distribution of natural gas.

The Tanzania Liquefied Natural Gas Project, also Likong’o-Mchinga Liquefied Natural Gas Project, is a planned liquefied natural gas processing plant in Tanzania at an estimated cost of USD30 Billion.

The government of Tanzania through the Tanzania Petroleum Development Corporation, in partnership with the BG Group (a division of Royal Dutch Shell), Equinor, Exxon Mobil  and Ophir Energy, plans to build an onshore liquefied natural gas export terminal at this location in Lindi.

In cities the LPG sector is growing; for instance, in Dar es Salaam City, where mostly middle-class families live, kiosks using LPG can be found less than a kilometer from each other.

About 90 percent of all households in Tanzania also use LPG for their cooking.

LPG has replaced the traditional use of charcoal and firewood.

Petroleum products supply in Tanzania is being conducted through a Bulk Procurement System (BPS) since 2011.

Under the BPS, purchases of petroleum products are made from a pool of imports obtained from suppliers selected through a competitive bidding process. The BPS covers the following grades of petroleum products: Automotive Gas Oil (AGO), Unleaded Motor Spirit Premium (MSP), Jet A-1, and Illuminating Kerosene (IK).

Since the start of oil and gas exploration in Tanzania, a total of 96 wells have been drilled so far and 44 of them turned successful with natural gas worth 57.4 trillion cubic feet.

During the nine years of the current MPSAs, Tanzania has not sold any blocks even as the government put eight blocks in the deep sea and Lake Tanganyika up for auction.

Today, the government of Tanzania is readying to amend the Model Production Sharing Agreements (MPSAs) of 2013 to loosen conditions in the oil and gas sector to attract more investors.

The changes will take into consideration the global trends in trade, fuel prices over the past decade and estimates for the next decade, the institutional changes in Tanzania and the current legal system, including the Petroleum Act of 2015, which is said to be unfavorable to investors.