CNG conversion for cars in Dar es Salaam

 

View from the back.

When I called for an Uber in Dar es Salaam the other day, I was shocked when I opened the trunk to reveal a gigantic compressed natural gas (CNG) cylinder.  I immediately assaulted the driver with questions and he was kind enough to share that installation was around $770 to $900 to install. The cylinders were available in the city for $7.28 (11kg). He said they were not available everywhere so one has to plan in advance but he didn't feel it was an inconvenience. He estimated that he could get 180-200km from each tank. He also said that the original petrol system remains in the vehicle so if the cylinder ran out he could continue to drive.

We rode with one other driver that had installed the system. I asked other drivers that did not have CNG if they had heard of it and if they planned to install. Many of them said the initial installation fee was cost prohibitive and almost all of the drivers alluded to the possibility that the incumbents profiting from the petroleum industry were not encouraging of this transition. The drivers would be excused for confusing me with a CNG salesman doing market research but I was truly fascinated. I did a little research and saw that Tanzania has national natural gas production and a pipeline that extends from the south to Dar es Salaam. This would explain how the local industry can be competitive and bodes well for sufficient energy production and reducing dependency on imports. 

We did several back of envelope calculations with drivers based on their reported fuel economy. We estimated that it would take 15,000km traveled before the initial investment was recouped. Most of the drivers reported that this would take six months to one year based on their daily driving. If I was less occupied with my day to day job and more entrepreneurial, I might be tempted to drop everything and invest in the CNG business in Tanzania. As the middle class grows and vehicle ownership increases, the costs of fuel are one of the first shocks to first time car owners. I hope that CNG conversion becomes more popular and widespread as it would support both the Tanzanian natural gas industry and reduce emissions and dependency on imported petroleum products. 

EDIT : A week after I saw this article about growth in the industry