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Tanzania LNG project talks to conclude in September

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LNG Industry,

According to the latest Reuters report, Tanzania is due to conclude its talks with the Equinor-led group of oil and gas companies interested in developing an LNG project within its borders in September.

The site of the export will reportedly be near the large offshore natural gas discoveries to the south of the country. Regulatory delays have stalled this project for years, until now.

The latest round of talks, commencing in April and concluding in September, aim to negotiate a host government agreement. Such an agreement is viewed as a critical step in the process of building towards a final investment decision (FID) for the project.

According to Reuters, in the words of the Tanzanian energy ministry: “The government has officially decided to begin talks in early April for construction of the LNG project… We are keen to implement this key project for the economy and we plan to... conclude the talks in September this year.”

Tanzania’s central bank believes that merely commencing construction on the facility will add 2% to the country’s economic growth (currently 7%).

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