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Construction of Tanzanian LNG facility set to begin in 2022

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LNG Industry,

According to the latest Reuters report, Tanzania is expecting the construction of its long-delayed LNG export project to begin in 2022.

The construction work is being carried out in the Lindi region by a consortium of international oil companies (IOCs), including: Equinor, Royal Dutch Shell, Exxon Mobil, Ophir Energy and Pavilion Energy. These IOCs will reportedly develop the project in partnership with Tanzania’s own Tanzania Petroleum Development Corp. (TPDC).

Regulatory delays have been a plagued the project for several years, however, in a recent budget presentation, the Tanzanian energy minister, Medard Kalemani, had good news to announce, “construction of this project is expected to start in 2022 and will be concluded in 2028.”

Tanzania’s central bank projects that the commencement of construction of the US$30 billion project in itself will add two percentage points to annual economic growth figures (currently 7%).

Once completed, the facility will be able to produce 10 million tpy of LNG.

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