Tanzania to Undertake Review of $42 Billion LNG Project for Approval in June

Mouad Boudina
Mouad Boudina
3 Min Read
TANZANIA

On Wednesday, the government of Tanzania announced the successful conclusion of its negotiations with investors involved in the groundbreaking $42 billion liquefied natural gas (LNG) project. The agreements reached during these negotiations are now poised for a comprehensive review process, which is expected to culminate in their approval next month.

According to Energy Minister January Makamba, the agreements necessary for the long-awaited approval of the project, which seeks to tap into Tanzania’s extensive yet untapped offshore gas reserves, will undergo a meticulous review process. This process involves presenting the agreements to the government’s cabinet for consideration before they are ultimately signed. The aim is to ensure a thorough evaluation of all aspects before moving forward with the project.

The government of Tanzania, led by Energy Minister January Makamba, has announced that the $42 billion liquefied natural gas (LNG) project negotiations have been successfully concluded. The agreements will undergo a comprehensive review process and are expected to be presented to the government’s cabinet for approval before being signed. The Ministry of Energy’s budget speech for 2023/24 indicates that the signing of an amended production-sharing agreement between the LNG investors and the government is anticipated to take place in June.

Minister Makamba affirmed that the $42 billion project will be a game-changer for Tanzania’s economy, bringing about a notable transformation. To ensure effective monitoring, the government plans to introduce a special law dedicated to overseeing the project’s progress and impact.

Tanzania Accelerates Energy Growth with LNG Terminal Agreement

In recent weeks, major energy companies Equinor (EQNR.OL), Shell (SHEL.L), and Exxon Mobil (XOM.N) announced a significant milestone. They have reached an agreement with Tanzania for the development of an LNG export terminal, marking a significant step forward in the project’s progress.

Additionally, Minister Makamba disclosed that the government has ambitious plans to boost electricity production in response to growing demand. Currently generating 1,872 megawatts (MW) of electricity, the aim is to increase this capacity substantially to reach 5,810 MW by the fiscal year 2025/26. This expansion is a proactive measure to meet the rising energy requirements of the country.

Minister Makamba highlighted the comprehensive approach taken in the energy sector, acknowledging the significance and contributions of various ongoing energy projects from different sources. This approach places great emphasis on the involvement and importance of the private sector in driving forward the country’s energy initiatives. By recognizing the role of both public and private entities, the government aims to foster a collaborative and dynamic energy landscape.

Mouad Boudina

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