Tunisia's Energy Transition: From Heavy Fuel Oil to Natural Gas

Strategic Insights -

In northwestern Tunisia, a significant transformation is taking place as the Société Tunisienne de l'Électricité et du Gaz (STEG) Project, backed by the African Development Bank, powers energy and industrial transition through the switch from heavy fuel oil to natural gas. This initiative has brought cleaner air, economic opportunity, and improved efficiency to businesses and communities, with over 1,250 households already connected to the natural gas network. The project's impact extends beyond residential connections, benefiting numerous businesses, including SICAM, an agri-food company that has seen a reduction in production costs and an increase in efficiency.

Key Takeaways:

  • The STEG Project has connected over 1,250 households to the natural gas network, with plans to serve 13,500 subscribers across 19 municipalities in Tunisia's Northwest.
  • The project has achieved two major natural gas activations: in February 2025 in Béja Sud and in June 2025 in Mjez Elbeb.
  • Businesses, such as SICAM, are benefiting from the switch to natural gas, with positive impacts on performance, production costs, and environmental sustainability.
  • The project has established around ten new industrial units, including brickyards and cement plants, and helped existing businesses expand their operations.
  • The African Development Bank has disbursed funds within five to seven days on average, accelerating the project's progress.
  • The STEG Project aligns 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, an agri-food company, has seen a reduction in production costs of up to 500,000 Tunisian dinars per season since switching to natural gas.
  • Ten new industrial units have been established in the serviced zones, including brickyards and cement plants.
  • The African Development Bank has disbursed funds within five to seven days on average.

Sources:

  • "M2 PressWIRE-July 30, 2025-: Tunisia: From Heavy Fuel Oil to Natural Gas — The Société Tunisienne de l'Électricité et du Gaz (STEG) Project Powers Energy and Industrial Transition in Northwestern Tunisia"
  • APO Group on behalf of African Development Bank Group (AfDB)
  • M2 Communications
  • African Development Bank Group (AfDB)