- The anticipated signing of the Host Government Agreement (HGA) and production sharing agreement (PSA) is subject to the successful completion of the assurance process in the coming weeks.
- The conclusion of the negotiations marks a significant turning point in the protracted process of implementing the Tanzania LNG project, with more extensive engineering design work coming next.
The energy firms (IEC) have finished discussions with the Tanzanian government, according to Jared Kuehl, Shell’s vice president and country chair for Tanzania. He said, “The international energy companies involved in the Tanzania LNG opportunity are pleased that important negotiations with the government of Tanzania have concluded.”
Although the Tanzanian government has not yet made an official announcement regarding the end of negotiations with the IEC, Mr Kuehl stated that the conclusion of the negotiations marks a significant turning point in the protracted process of implementing the Tanzania LNG project, with more extensive engineering design work coming next.
He added, “Subject to successful completion of the assurance process over the coming weeks, we anticipate the signing of the Host Government Agreement (HGA) that covers the onshore elements of the project and a production sharing agreement (PSA) that oversees its upstream components.” Also, ExxonMobil, MedcoEnergi, Pavilion Energy, TPDC, and the Tanzanian government are some of the partners. According to Tanzania’s lead negotiator Charles Sangweni, the agreement also addresses land usage and security. Sangweni said, “We are happy it is a big step towards the implementation of the project, although we have a lot to do. If everything goes as planned, I am confident the final investment decision will be reached in 2025.”
Towards the realization of its $30 billion liquefied natural gas (LNG) project, the government and a consortium made up of Shell, Exxon Mobil, Equinor, and Ophir Energy signed a first Host Government Agreement (HGA) in June 2022. This opened the door for further discussions.