Tanzania LNG Project Gains Critical Momentum

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BY: Neil Ford

Tanzania’s Ministry of Energy and Minerals announced in March an agreement with Anglo-Dutch major Shell and Norway’s Equinor to develop a long-awaited LNG project in the south of the country.

The ministry said negotiations had reached a successful conclusion and that a Host Government Agreement is now being drafted, alongside a production sharing contract covering the offshore acreage involved.

There is a long way to go before the project is actually developed, but it has never looked more likely to be built.

A final investment decision (FID) is expected in 2025 with the front-end engineering and design (FEED) phase preceding FID.

Construction time is likely to be five to six years, suggesting the large-scale project could come on-stream around 2030.

Plentiful feedstock Blocks 1, 2 and 4 in the Mafia Deep Basin off the southeast coast of the country will provide feedstock for the plant. Equinor operates Block 2 with a 65% stake, alongside partner ExxonMobil, which holds the remaining 35% equity. Equinor estimates reserves on the block…

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.