A long-awaited deal to set out the terms of Tanzania’s $42 billion LNG plant is expected to be finalized in two weeks. Finalization of the Host Government Agreement (HGA) between Tanzania and international partners will pave the way for the project. Once done, this will commence the next implementation levels to continue. The HGA will establish the essential legal and fiscal framework required to reach the final investment decision. This is a vital milestone expected to accelerate the project’s development and bolster energy security. Furthermore, it will facilitate economic growth in the region.
“We are optimistic that if not this week, then by the end of the month,” a source close to the topic noted. The source, preferring not to be mentioned, noted that so far the two parties have agreed on most part. Deputy Prime Minister and Minister of Energy Doto Biteko confirmed the negotiations near completion. However, he declined to mention the exact timeframe in the interest of the negotiations.
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The implementation of Tanzania’s LNG plant awaits the conclusion of negotiations to take a full swing towards commencement. The conclusion of negotiations will be marked by finalized documents being submitted to relevant authorities for approval. The project timeline aims for HGA completion to enable preparatory engineering phase. Moreover, this is before the FID in 2025, leading to production commencement. The LNG project is set to be implemented in the Likong’o area of LIndi Region. The project has faced delays due to complex negotiations and regulatory considerations.
President Hassan has noted the strategic importance for the LNG venture. She emphasized its potential to bring significant capital and revenue to Tanzania. Furthermore, she noted it would ensure benefits prioritize residents of the Lindi and Mtwara regions. The president has also advocated for empowering Tanzanians to participate fully in the project. The nation possesses substantial natural gas reserves, estimated at 57 trillion cubic feet. The reserves are primarily located offshore in the Indian Ocean. Furthermore, significant discoveries have been made at Songo Island and Mnazi Bay.
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