Quiet Revolution in Tunisia's Industrial Zones: Natural Gas Transforms Businesses and Communities

Strategic Insights -

In the northwestern Tunisian industrial zones, a revolutionary transformation is underway, driven by the shift from heavy fuel oil to natural gas. At facilities like SICAM, an agri-food company, the switchover has led to significant improvements in air quality, production efficiency, and economic savings. The Natural Gas Transport and Distribution Network Development Project in Western Tunisia, implemented by the Société Tunisienne de l'Èëlectricité et du Gaz (STEG), has achieved remarkable progress, connecting over 1,250 households and driving industrial and economic growth.

Key Takeaways:

  • The STEG project has achieved two major natural gas activations, connecting over 1,250 households to the natural gas network, with a goal of serving 13,500 subscribers across 19 municipalities in Tunisia's Northwest.
  • The project has led to significant improvements in air quality, production efficiency, and economic savings for businesses, with SICAM saving up to 500,000 Tunisian dinars per season.
  • The project has also driven industrial and economic growth, with around ten new industrial units, including brickyards and cement plants, established thanks to the gas supply, creating jobs and strengthening regional economic resilience.
  • The project is a model of effective collaboration between STEG and the African Development Bank, with the Bank's swift disbursement process key to keeping the project on track.
  • The project aligns seamlessly with Tunisia's national priorities for inclusion, green growth, and balanced regional development.

Statistics:

  • Over 1,250 households have been connected to the natural gas network as part of the STEG project.
  • The project aims to serve 13,500 subscribers across 19 municipalities in Tunisia's Northwest.
  • SICAM has saved up to 500,000 Tunisian dinars per season since switching to natural gas.
  • As of 2025, the project has already seen the establishment of ten new industrial units, including brickyards and cement plants.
  • The project has a total of [euro]49.39 million in financing from the African Development Bank.

Sources:

  • APO Group
  • African Development Bank Group (AfDB)
  • Société Tunisienne de l'Èëlectricité et du Gaz (STEG)
  • Mehdi Khoali, Chief Operations Officer at the African Development Bank
  • Kamel Trabelsi, Deputy Director General of SICAM
  • Mohamed Riadh Hellal, Lead Department Head at STEG and the project's coordinator