In Tunisia’s northwestern corridor, a major energy transition is quietly reshaping the livelihoods of communities and the trajectory of local industry. Once dependent on heavy fuel oil, the region is now turning to natural gas to power homes and factories, marking a significant step forward for cleaner energy in North Africa and potentially, a model for similar transitions across the continent.
The change is being led by Tunisia’s national utility company, Société Tunisienne de l’Électricité et du Gaz (STEG), with support from the African Development Bank (AfDB). Their joint initiative—the Natural Gas Transport and Distribution Network Development Project—has started supplying gas to key municipalities such as Béja Sud and Mjez Elbeb, with plans to connect more than 13,000 households and industrial facilities across 19 towns by 2026.
Though modest in scale compared to mega energy projects in other parts of the world, the impact in Tunisia has been profound. The project is replacing carbon-intensive heavy fuel oil with a cleaner-burning alternative—natural gas—reducing air pollution, improving industrial efficiency, and lowering energy costs for businesses and consumers.
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At the SICAM agri-food processing facility in Béja, which specializes in canned tomatoes, the transition has already brought measurable benefits. “With gas, we’ve eliminated visible pollution, cut down our energy bills by hundreds of thousands of dinars, and improved our production efficiency,” says Kamel Trabelsi, the company’s Deputy Director General. Their boilers, once laborious and pollutive to start, now reach 95% capacity almost instantly using piped natural gas.
The shift has not only improved working conditions and reduced operational downtime, but also significantly lowered the company’s environmental footprint. Prior to the change, the use of heavy fuel oil emitted thick black smoke into nearby neighborhoods and contributed to Tunisia’s greenhouse gas load.
Tunisia’s move is particularly relevant for other African nations grappling with energy insecurity, industrial underdevelopment, and high pollution levels. According to the International Energy Agency (IEA), over 600 million people in Africa still lack access to electricity. At the same time, industries often rely on costly and dirty diesel generators, contributing to both economic inefficiency and environmental degradation.
The STEG project, financed with €49.39 million from the AfDB, showcases how strategic investments in mid-scale infrastructure can unlock green growth and industrial competitiveness—without resorting to expensive, fossil-heavy mega solutions.
Mehdi Khoali, Chief Operations Officer at the African Development Bank, explains that the project has already catalyzed local industrialization. “Ten new industrial units—like brick kilns and cement plants—have set up shop along the new gas pipeline. Others have expanded. Jobs are being created, and the region is becoming more economically resilient,” he notes.
The initiative also serves as a case study in development finance efficiency. Unlike many donor-funded infrastructure projects that suffer from long delays, the African Development Bank’s swift disbursement cycle—sometimes within a week—has kept STEG’s timelines on track. Project Coordinator Mohamed Riadh Hellal says this efficiency has been “crucial to delivering the infrastructure when and where it’s needed.”
The project’s design reflects a careful balance of development priorities: connecting underserved households, supporting local enterprises, and reducing emissions—all without triggering spikes in public debt or compromising on technical standards. Moreover, the infrastructure is built with scalability in mind, offering future opportunities for integration with regional gas corridors and even renewable hydrogen initiatives being explored by countries like Morocco and Egypt.
While natural gas is still a fossil fuel, experts argue that it represents a practical bridge in the African energy transition. “In contexts where renewables cannot yet deliver 24/7 reliability or industrial-grade power, natural gas provides a cleaner, cost-effective intermediate step,” says energy policy analyst Leila Maalouf, based in Tunis.
For Tunisia and similar economies, the key will be ensuring that this transition does not become a destination—but a pathway to an eventual low-carbon economy that incorporates solar, wind, and green hydrogen. In this regard, Tunisia’s experience may offer important lessons for other African nations aiming to decarbonize their economies without derailing development.
As the continent prepares to host global climate negotiations at COP30 in 2025, stories like Tunisia’s are likely to take center stage—demonstrating how tailored, region-specific energy solutions can support both people and the planet.
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