Tanzania LNG gains critical momentum [Gas in Transition]

Tanzania LNG gains critical momentum [Gas in Transition]

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Natural Gas News
Tanzania LNG gains critical momentum [Gas in Transition]

Summary

The prospects for LNG development in Tanzania have never looked better. A new approach on the part of President Samia Suluhu Hassan and strong demand for LNG globally has put Tanzania LNG on-track for a final investment decision in 2025. [Gas in Transition, Volume 3, Issue 4] by: Neil Ford

Tanzania’s Ministry of Energy and Minerals announced in March an agreement with Anglo-Dutch major Shell and Norway’s Equinor to develop a long-awaited LNG project in the south of the country. The ministry said negotiations had reached a successful conclusion and that a Host Government Agreement is now being drafted, alongside a production sharing contract covering the offshore acreage involved. There is a long way to go before the project is actually developed, but it has never looked more likely to be built. A final investment decision (FID) is expected in 2025 with the front-end engineering and design (FEED) phase preceding FID. Construction time is likely to be five to six years, suggesting the large-scale project could come on-stream around 2030. Plentiful feedstock Blocks 1, 2 and 4 in the Mafia Deep Basin off the southeast coast of the country will provide feedstock for the plant. Equinor operates Block 2 with a 65% stake, alongside partner ExxonMobil, which holds the remaining 35% equity. Equinor estimates reserves on the block...