Tanzania Settles On LNG Facility Location

Tanzania will build its LNG facility in Lindi with the Tanzania

Petroleum Development Corporation having acquired the title deed for a 2,071Ha parcel of land.

According to TPDC the land location was reached in agreement with international oil companies with interest on the project all of whom have discovered gas reserves off the Indian Ocean coast.

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“Once the project is complete it will enable the production of natural gas  for internal use as well as for export generating much needed foreign exchange,” TPDC said in a statement.

The government has also set aside another 17,000Ha in surrounding areas for development of industrial parks that will purchase the gas from the facility.

The Tanzanian government hasin the past said it plans to spend $6 million in the fiscal year 2015/16 of acquire land for the construction of a liquefied natural gas terminal with the entire project expected to cost over $30 billion.

Lindi is favored as it is close to an offshore deep-sea region where various companies including BG Group, Statoil, ExxonMobil and Ophir Energy have discovered over 50Tcf of natural gas.

A Memorandum of Understanding (MoU) between the government of Tanzania, the partners in Blocks 1, 3 and 4 and the partners in Block 2 signed in April 2014 covering the site selected for the LNG plant in Lindi.

Tanzania has to date discovered in excess of 50Tcf in the Indian Ocean

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