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Tanzania to begin construction of $30bn LNG project in 2022



The government of Tanzania has announced that it expects a consortium of energy companies to begin construction of a $30bn liquefied natural gas (LNG) project in 2022. The consortium of companies involved in the project include Equinor, Shell, Exxon, Ophir Energy and Pavilion Energy.
Tanzania to begin construction of $30bn LNG project in 2022
(Image via Wikimedia).

Set to be located in the Lindi region of Tanzania the project has to date been delayed due to several regulatory hurdles. In March, the Tanzanian government stated that it planned to complete negotiations with the project partners, which are being led by Equinor.

It is expected that construction of the new facility will be carried out in conjunction with the state-run Tanzania Petroleum Development Corporation (TPPC). 

“We instructed the government negotiation team to hold separate talks with each individual investor team to hold separate talks with each individual investor, instead of the previous arrangement of holding joint talks with all the investors,” said Medard Kalemani, Tanzania energy minister. “We expect these talks to be completed within seven months.”

Construction of the LNG terminal is expected to begin in 2022 and continue through to 2028.

The project is expected to make a major contribution to Tanzania’s economy with the country’s central bank suggesting that as many as two percentage points could be added to annual economic growth, which currently stands at around 7%.

The LNG terminal is intended to take advantage of Tanzania’s estimated recoverable reserves of over 57.54 trillion cubic feet (tcf) of natural gas.

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Tags: Oil & Gas
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Dear All, ready for a new challenge after spending more that 6 years on the Ichthys Project. Hope to see you soon. Kind regards Guenahel LE MOING
LE MOING Guenahel, 12 June 2019
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Tanzania to begin construction of $30bn LNG project in 2022 - Time to read 2 min
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