Tanzania-based Amsons Group is reportedly in advanced talks to acquire Oryx Energies in a deal estimated to be worth $250 million (over 650 billion Tanzanian shillings), according to a report from Geneva, Switzerland.
Industry experts claim that the acquisition, which involves Oryx’s oil and lubricants business, and International Petroleum Reserves Limited (Tiper), may already be complete, although neither company has publicly confirmed the reports.
Tiper is owned by a 50-50 partnership between the Tanzanian government, through the Treasury Registrar, and Geneva-based Oryx Energies SA.
Tiper, located in the Kigamboni Industrial Estate in Dar es Salaam, operates one of the largest oil and petroleum storage facilities in the sub-Saharan region. The facility was originally designed as an oil refinery, but is now used as a major storage tank depot for petroleum products for various oil marketing companies.
If completed, the acquisition will position Amsons Group as East Africa’s largest energy distributor and fuel storage service provider, significantly expanding its influence in the regional oil and LPG market.
Analysts say the deal will give Amsons access to Oryx’s extensive oil storage infrastructure, lubricant blending plants, and extensive network of fuel stations across the region, further strengthening its position in the energy sector.
The acquisition announcement comes as the LPG market in Tanzania is witnessing rapid growth, coupled with an increasing demand for clean cooking fuel.
Historically, Oryx has dominated the LPG market in Tanzania, previously holding over 46 percent of the market. However, intense competition, particularly from Taifa Gas, has transformed the market over the past five years.
According to a recent report by the Energy and Water Utilities Regulatory Authority (EWURA), Oryx currently holds 35.2 percent of the LPG market, although some industry insiders believe the figure could be higher.
National consumption of cooking gas (LPG) rose by 38 percent to more than 403,600 metric tonnes in a year, a rise largely driven by the government’s clean cooking fuel campaign and gas cylinder subsidy strategies aimed at reducing reliance on charcoal, firewood, and crop residues.
The government’s clean cooking energy strategy aims to increase the number of households using clean energy for cooking from about seven percent in 2024 to over 80 percent by 2034. Current estimates show coverage rates are around 24 percent.
In a move aimed at diversifying supply and lowering costs for consumers, EWURA recently introduced LPG into the Petroleum Bulk Procurement system.
Tanzania is increasingly positioning itself as a major LPG hub for East and Central Africa, with major energy companies investing heavily in reception facilities and storage infrastructure in Dar es Salaam and Tanga.