- The East African country is estimated to have total recoverable gas reserves of 57.54 trillion cubic feet.
- Tanzania postponed the development of its vast offshore gas resources for several years.
Tanzania has completed talks with Norway’s Equinor and Britain’s Shell to construct the proposed $30bn liquefied natural gas (LNG) terminal. The partners have commenced contract preparations for the terminal, built near large-scale offshore natural gas discoveries in deep waters off Tanzania’s southern coast. Due to regulatory delays, Tanzania postponed the development of its vast offshore gas resources for several years. In June 2022, Tanzania, Shell, and Equinor signed a framework agreement to speed up the start of the construction of the LNG export terminal project.
The government expects to make the final investment decision on the terminal in 2025. Tanzania Energy Ministry stated on Twitter: “Minister January Makamba said negotiations on the construction of the LNG project were complete, and now experts are drafting contracts. “Of these contracts, one is about the Host Government Agreement, and another is on joining blocks 1, 2, and 4, which will provide natural gas for the LNG project.”
Equinor operates block 2 in Tanzania. This block is estimated to hold more than 20 trillion cubic feet of gas. Shell operates block 1 and block 4 in Tanzania. These blocks have total estimated recoverable gas reserves of 16 trillion cubic feet. Equinor and Shell and Ophir Energy, Exxon Mobil, and Pavilion Energy plan to build the LNG plant in the country’s southeast Lindi region.