Opportunities Abound as Tanzania LNG Gains Critical Momentum.
Watching how quickly the Tanzania government works with large super major multinational energy companies to tap into substantial natural gas reserves is impressive.
The LNG made big front-page headlines for weeks, and people are still discussing it months after.
The surprising (or unsurprising) thing about the news and development is that the attention it is garnering now makes all the hullabaloo in previous months a child’s play.
When it made newspaper headlines, we were told that;.
Tanzania has reached a successful conclusion, and a Host Government Agreement is now being drafted alongside a production-sharing contract covering the offshore acreage involved.
A final investment decision (FID), is expected in 2025, with the front-end engineering and design (FEED) phase preceding FID.
“Wow!” I hear you say. “Oil and gas here I come.”
The LNG global market’s rapid evolution provides the excitement of a hopeful potential market and peace of mind to new LNG-producing countries like Tanzania.
Emerging markets are increasingly in favor of spot market supply and short-term LNG purchase contracts as opposed to the traditional long-term LNG sale contract that LNG producers prefer for the certainty of financing of the LNG development projects.
The most significant advantage is that Tanzania is well situated geographically to serve the Asian LNG market; hence the growth in demand for LNG in China and India provide Tanzania with a promising market that will drive the development of LNG project in Tanzania and give assurance to the potential financier of the Lucrative market that will enable Loan repayment.
Furthermore, the EU focuses on natural gas liquefaction (LNG) from Gabon, Tanzania, and Mozambique; therefore, Africa feels such an uptick and will provide 220 billion cubic meters of natural gas in 2040.
Tanzania has been rapidly developing over the past few years.
This growth can be attributed to consistent public investment from the government in several sectors ranging from the energy sector to advancement in the telecommunication and finance sector.
