Tanzania Concludes Talks for $40 Billion LNG Export Project with International Energy Companies

May 23, 2023 | Business, News | 0 comments

Tanzania has successfully concluded negotiations with international energy companies for a long-awaited liquefied natural gas (LNG) export project, estimated to be worth $40 billion. This milestone sets the stage for the finalisation of agreements in the coming weeks. The consortium, spearheaded by Equinor, Shell, and Exxon Mobil, aims to establish an onshore LNG plant in Tanzania, strategically located near vast offshore gas fields. After a prolonged pause, discussions on the project resumed in 2021 following the assumption of office by President Samia Suluhu Hassan. Her proactive approach and commitment to advancing crucial energy projects have played a pivotal role in revitalising negotiations and steering the LNG export project towards its final stages.

The completion of negotiations marks a significant breakthrough for Tanzania, as it paves the way for the realisation of this ambitious LNG export project. The consortium is now poised to move forward with the development of the onshore LNG facility. Positioned in close proximity to substantial offshore gas reserves, the project holds immense potential for the country’s energy sector and economic growth.

The forthcoming signing of agreements within the coming weeks signifies a major step forward in the realisation of Tanzania’s LNG aspirations. The project holds promise not only for the participating international energy companies but also for Tanzania’s economic development, as it positions the country as a key player in the global LNG market.

With negotiations successfully concluded, Tanzania is poised to unlock the vast potential of its natural gas resources, ensuring long-term benefits for the nation and its people. The LNG export project serves as a testament to Tanzania’s commitment to harnessing its energy resources for sustainable growth and development