Tanzania is renewing its efforts to finalise a $42 billion liquefied natural gas (LNG) investment agreement by mid-2026, part of a broader strategy to position itself as a major energy hub in East Africa. Negotiations with global energy majors are approaching the final stages, with authorities targeting a signing before June next year, Africa Business Insider reported.
The project, one of the largest energy investments in Africa, involves tapping more than 47 trillion cubic feet of offshore gas reserves and is structured as a joint venture between the state-owned Tanzania Petroleum Development Corporation and international partners including Shell and Equinor. ExxonMobil, Pavilion Energy and Medco Energi are also involved, Enerdata noted.
Officials said commercial terms have been largely agreed, with remaining discussions focused on the legal framework that will underpin the Host Government Agreement needed to unlock the multibillion-dollar investment. Production is not expected to begin until roughly eight years after final agreements are signed, reflecting the complex nature of establishing LNG export infrastructure.
Backers say the LNG project could reshape Tanzania’s economy by generating export revenues, strengthening energy security and supporting industrial development, potentially anchoring the country’s role as a regional energy exporter. However, investors remain cautious over regulatory and governance challenges that have hindered progress on the long-delayed scheme.
