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

Strategic Insights -

In northwestern Tunisia's industrial zones, a transformation is underway, driven by the Natural Gas Transport and Distribution Network Development Project. This initiative, implemented by the Société Tunisienne de l'Électricité et du Gaz (STEG) with financing from the African Development Bank, is bringing cleaner air, economic opportunity, and improved living standards to the region. The project has already achieved significant milestones, including the connection of over 1,250 households to the natural gas network and the establishment of ten new industrial units.

Key Takeaways:

  • The Natural Gas Transport and Distribution Network Development Project in Western Tunisia has transformed the energy landscape in northwestern Tunisia, replacing heavy fuel oil with natural gas, which has brought cleaner air, reduced production costs, and increased efficiency to businesses like SICAM, an agri-food company specializing in canned tomatoes.
  • The project, implemented by STEG with financing from the African Development Bank, has connected over 1,250 households to the natural gas network and established ten new industrial units, including brickyards and cement plants.
  • The project has improved the quality of life for residents in the region, reducing pollution and increasing access to affordable and reliable energy.
  • SICAM, connected to the grid in October 2024, now uses around 17,000 m³ of natural gas per production cycle, saving up to 500,000 Tunisian dinars per season.
  • The project has also strengthened regional economic resilience, creating jobs and driving industrial growth, and is aligned with Tunisia's national priorities for inclusion, green growth, and balanced regional development.
  • The African Development Bank's swift disbursement process has been crucial to the project's success, with funds disbursed within five to seven days on average.

Statistics:

  • The project has connected over 1,250 households to the natural gas network with two major natural gas activations in February 2025 in Béja Sud and in June 2025 in Mjez Elbeb.
  • The infrastructure will eventually serve 13,500 subscribers across 19 municipalities in Tunisia's Northwest, including 2,500 additional connections by the end of this year.
  • SICAM has saved up to 500,000 Tunisian dinars per season by switching to natural gas.
  • The project has established ten new industrial units, including brickyards and cement plants.
  • The African Development Bank has disbursed funds within five to seven days on average.

Sources:

  • African Development Bank. "Quiet Revolution in Tunisia's Industrial Zones: Natural Gas Transforms Businesses and Communities"
  • African Development Bank. "Project Document: Natural Gas Transport and Distribution Network Development Project in Western Tunisia"
  • Société Tunisienne de l'Électricité et du Gaz (STEG). "Natural Gas Transport and Distribution Network Development Project in Western Tunisia"