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Tanzania Signs LNG Framework Agreement With Equinor And Shell

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The deal announced on Saturday foresees a final investment decision by 2025, and a start of operations by 2029-2030 at a liquefied natural gas plant to be built in Tanzania’s southern coastal town of Lindi.

Hence Tanzania has signed a framework agreement with Norway’s Equinor and Britain’s Shell that will bring them closer to starting construction on a $30bn project to export liquefied natural gas (LNG).

It marks a significant step forward in Tanzania’s efforts to jumpstart the export of part of the vast gas deposits off its coast, estimated at more than 57 trillion cubic feet (1,630 billion cubic metres).

“We have never reached this stage of natural gas development in the history of our country,” Energy Minister January Makamba said during the signing ceremony in the capital Dodoma.

“This project will significantly change our economy,” Makamba said.

“Tanzania’s geographical positioning makes it easy to transport the natural gas to other countries, especially Asian (ones), which are looking for new sources of energy.”

Tanzania’s President Samia Suluhu Hassan, also present, welcomed the preliminary agreement.

“We have reached a good stage of discussions about the LNG project, but much work is still waiting for us to talk and make it competitive,” she said.

Plans for the LNG plant had stalled for several years under her predecessor John Magufuli, and she re-launched efforts after becoming head of state last year.

Equinor country manager for Tanzania, Unni Fjaer, said the deal has been long in the making.

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