AfricaContracts and Tenders

Tanzania inks initial deal with Shell and Equinor on $30 billion LNG export project

By LNG Prime Staff
Tanzania inks initial deal with Shell and Equinor on $30 billion LNG export project
For illustration only (Image: TMS Cardiff Gas )

Equinor and Shell have signed a framework deal with Tanzania to develop the planned $30 billion LNG export project in Lindi.

Officials from Equinor and Shell signed the deal during an event held on Saturday attended by President Samia Suluhu Hassan and energy minister January Makamba, according to a statement by the Tanzanian government.

The deal precedes a host government agreement. Tanzania expects a final investment decision on the project in 2025, while the construction could take about 4 to 6 years, Tanzania’s officials said during the ceremony.

Tanzania estimates that its recoverable gas resources are at 57.54 trillion cubic feet, according to the statement.

Talks resumed last year

In January this year, Tanzania selected a UK unit of law firm Baker Botts to advise the country in talks with international energy companies over the giant LNG export project.

State-run Tanzania Petroleum Development Corporation signed the consultancy deal with Baker Botts (UK).

Minister Makamba said in November last year that Tanzania had resumed negotiations with energy firms for the Tanzania LNG project.

He said then that the companies include Shell, Equinor, ExxonMobil, Pavilion Energy, and Medco Energi.

Prior to that, Shell and Equinor called on Tanzania to support the stalled LNG export project. The move came just weeks after Tanzania’s President Samia Suluhu Hassan took office.

Shell’s chief executive Ben van Beurden also held a virtual bilateral meeting with the President to discuss the LNG project.

Large gas discoveries

Equinor and Shell are both operators of large gas discoveries off the country’s coast.

The Norwegian firm and partner ExxonMobil discovered more than 20 trillion cubic feet of gas in Block 2 offshore Tanzania. Also, Shell says it has about 16 Tcf of natural gas in Block 1 and 4.

Equinor also said in January last year it had decided to write down the book value of the Tanzania LNG project on the company’s balance sheet by $982 million. The firm started negotiations with the Tanzania government back in 2018 to set out the commercial and fiscal framework for the LNG project.

It previously said that the Block 2 gas would go to the liquefaction plant in Lindi with a potential capacity of 7.5 million tonnes per year.

Most Popular

Contracts and Tenders

Venture Global seals new deals to support expansion of its power network

US LNG exporter Venture Global has entered into power and grid frame agreements with GE Vernova and Baker Hughes for up to 16 new, 720 MW power island units and associated power transformer equipment, supporting the continued expansion of its existing behind-the-meter, industrial power network that is not reliant on the grid.
LNG Terminals

Venture Global gets approval to place first Plaquemines LNG phase in service

Venture Global’s Plaquemines LNG has secured approval from the US FERC to place Phase 1 of its LNG export plant in Louisiana into service.
Vessels

MISC orders five more LNG carriers in China

Malaysian shipping firm MISC has officially signed a shipbuilding deal with China’s Hudong-Zhonghua for five additional newbuild 174,000-cbm liquefied natural gas (LNG) carriers, which will serve a 20-year charter with a unit of MISC’s parent, Petronas.

More News Like This

Research and Development

Shell, GTT, and LR to develop new LNG carrier

UK-based LNG giant Shell, French LNG containment specialist GTT, and classification society Lloyd’s Register have launched a joint development project to develop a conceptual 200,000-cbm LNG carrier combining hybrid-electric propulsion with GTT’s Next1 LNG cargo containment technology.
LNG Terminals

Shell delivers first bio-LNG cargo to Singapore

A unit of UK-based LNG giant Shell has delivered what it says is Singapore's first ISCC EU-certified bio-LNG cargo at the Singapore LNG-operated terminal on Jurong Island.
LNG Terminals

Equinor says Hammerfest LNG upgrade costs climb further

Costs for Equinor’s Snohvit Future project, which includes upgrading the 4.3 mtpa Hammerfest LNG export facility on Melkoya Island in Norway, have increased further from the original estimates.
Corporate

Shell: Q3 LNG trading results to be in line compared to previous quarter

UK-based LNG giant Shell expects trading and optimization results for its integrated gas business in the third quarter of 2026 to be in line compared with the previous quarter.