Tanzania is targeting a signing of a $42 billion liquefied natural gas (LNG) export project agreement before June 2026, a senior government minister said, signaling renewed momentum for a long-delayed initiative that could transform the country into a major exporter of natural gas. Equinor and Shell are slated to be joint operators of the planned facility, with partners including ExxonMobil, Pavilion Energy, Medco Energi and the Tanzania Petroleum Development Corporation, according to officials and reporting by Reuters.
The project, which would tap an estimated 47.13 trillion cubic feet of gas reserves, has been in negotiation for several years but stalled over proposed changes to financial terms agreed in 2023. Tanzania’s minister of state for planning and investment, Kitila Mkumbo, said commercial discussions are essentially concluded, with remaining talks focused on finalising the legal framework for the deal, a necessary step ahead of signing and eventual construction. He noted that, at $42 billion, this is the largest investment project ever planned in the country.
Officials expect the LNG project to create more than 100,000 jobs and help establish East Africa as an emerging hub for LNG exports to markets in Asia and beyond. Production is currently anticipated to begin about eight years after signing, with preparatory work and host government agreements being finalised. The move comes as Tanzania concurrently explores ways to monetise its broader energy resources and enhance revenue streams for infrastructure and development priorities.
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