Construction of Tanzania’s US $30bn LNG project to commence in 2022

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The government of Tanzania has announced that construction works on the long-delayed liquefied natural gas (LNG) project shall commence in 2022.

Energy Minister Medard Kalemani, said that the government plans to conclude talks with a group of foreign oil and gas companies led by Norway’s Equinor on developing the LNG terminal. Equinor, alongside Royal Dutch Shell, Exxon Mobil and Ophir Energy and Pavilion Energy, plan to build the onshore LNG plant in Lindi region.

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

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liquefied natural gas

Construction of the LNG project was held up for years due regulatory delays. The minister said that the project will be concluded in 2028. The project is a joint venture between TPDC and German firm Ferrostaal Industrial Projects, Danish industrial catalysts producer Haldor Topsoee and Pakistan’s Fauji Fertilizer Company. The international oil companies (IOCs) will develop the project in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC).

The LNG export terminal will be built near huge offshore natural gas discoveries in deep water south of the country. The project will have capacity to produce 10 million tonnes per annum (MTPA) of liquefied natural gas.

Tanzania has estimated recoverable reserves of over 57.54 trillion cubic feet (tcf) of natural gas. The country uses some of the gas for power generation and running of manufacturing plants.

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