Published on : 12/06/2022 – 17:21
The government signed on Saturday June 11 a framework agreement with Shell and Equinor, British and Norwegian companies, for the construction of a terminal for the production and export of liquefied natural gas. The cost of the project is estimated at 30 billion dollars, or 28.5 billion euros.
This is a very large-scale project that will pave the way for the exploitation of Tanzania’s significant gas reserves, estimated at 1,630 billion cubic meters on land and at sea. This liquefied natural gas terminal (LNG) will be built in the port city of Lindi, in the southeast of the country. About a hundred kilometers off the coast of this city, Shell and Equinor already operate several blocks with other companies which between them would contain more than 1,000 billion cubic meters of gas.
This initial agreement paves the way for new discussions which will aim for a final investment decision (FID) in 2025 and an expected start of activity by 2029-2030.
A long-standing project
The $30 billion project had been on the cards for several years, with the two gas giants urging the Tanzanian authorities to complete the deal. The CEO of Shell and the vice-president of Equinor had even put some pressure last year on the Tanzanian government to unblock this project suspended since 2017.
The project was finally relaunched by President Samia Suluhu Hassan, after her accession to power in March 2021. On Saturday, the Tanzanian authorities welcomed the signing of this agreement. ” We have never reached this stage of natural gas development in the history of our country. said January Makamba, Minister of Energy, for whom this project will considerably change the Tanzanian economy.
« The 70 trillion shillings to be invested will bring about a major revolution to boost our economy and the well-being of Tanzanians Tanzanian President Samia Suluhu Hassan wrote on her Twitter account.
I am pleased to witness the signing of a pre-agreement agreement (HGA) for a natural gas processing and processing project between our country and investors. The 70 Trillion Shillings to be invested will bring about a major revolution to boost our economy and the well-being of Tanzanians. pic.twitter.com/IRAPRxtyFx
– Samia Suluhu (@SuluhuSamia) June 11, 2022