Cost of Tanzania LNG project raised to $42 bln

Cost of Tanzania LNG project raised to $42 bln

DODOMA, May 18, 2023 – The total cost of the proposed Tanzania LNG project is expected to reach up to USD 42 billion, government officials announced on Saturday.

Previously, the project was touted as costing USD 30 billion, although sources estimate the difference in cost is attributed to the larger figure encompassing lifetime costs, including drilling.

A report by Stanbic Bank recently placed upstream costs of the project at USD 15.6 billion and cost of the LNG facility at USD 17.1 billion.

The proposed facility will be located in Lindi on the southern coast of Tanzania next to confirmed offshore gas deposits of 1.7 tcm (60 tcf).

The plan to build the Tanzania LNG project is being drafted by a consortium consisting of Equinor, Shell, ExxonMobil, Ophir Energy and Pavilion Energy, with the FID expected in 2025.


The LNG plant is expected to come on line by 2028 and will source gas from blocks 1, 2 and 4, which will be linked under amended contracts.

Shell currently operates Block 1 and Block 4, which together hold estimated recoverable gas reserves of 453 bcm (16 tcf).

Equinor operates Block 2 along with its partner ExxonMobil. The concession is expected to hold 566 bcm (20 tcf) of gas reserves.

“When completed, the project will change the country’s economic outlook, and unlock the economic growth and capture benefits from LNG exporting in the global market,” said Tanzanian President Samia Suluhu Hassan.

In June 2022, Equinor, Shell and Ophir Energy signed a host government agreement to construct the complex.

Reuteurs reported in March 2023 that negotiations to build the complex were completed.

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