Tanzania resumes $30-bn LNG negotiation

Tanzania

DODOMA, November 12, 2021 – The Tanzanian government has resumed talks with Shell and Equinor to develop a USD 30-billion LNG project, the government announced on Monday.

Negotiations began in 2014 for an LNG terminal in Lindi, Tanzania, but had come to a deadlock in 2019.

The government aims to fast track the project and begin construction in 2022.

Shell operates blocks 1 and 4 in the country, which together hold an estimated 651 bcm (23 tcf) of gas. The Anglo-Dutch multinational holds a 60% stake, with partners Ophir Energy and Pavilion Energy each holding 20% shares.

Equinor operates offshore Block 2, which is estimated to hold 566 bcm (20 tcf) of gas. The Norwegian E&P company is partnered with ExxonMobil, which holds a 35% stake, and Tanzania Petroleum Development Company, which holds a 10% stake. Equinor holds the remaining 65% share.

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