Equinor has decided to write down the book value of its Tanzania LNG project (TLNG) on the company’s balance sheet by US$982 million.
The change will be reflected in adjusted earnings for EPI division in the company’s 4Q20 results, which are due to be reported on 10 February 2021.
While progress has been made in recent years on the commercial framework for TLNG, overall project economics have not yet improved sufficiently to justify keeping it on the balance sheet. The TLNG project has an anticipated breakeven price well above the portfolio average for Equinor and is, at this time, not competitive within this portfolio. Equinor will continue to engage with the Government of Tanzania in negotiations on a commercial, fiscal and legal framework that may provide a viable business case for TLNG in the future.
Read the article online at: https://www.lngindustry.com/liquefaction/29012021/equinor-writes-down-book-value-of-tanzania-lng-project/