AfricaLNG Terminals

Tanzania resumes talks over giant LNG project, minister says

By LNG Prime Staff
Tanzania resumes talks over giant LNG project, minister says
For illustration only (Image: Equinor)

Tanzania has resumed talks with energy firms over a giant LNG project which includes sending the country’s offshore gas resources to a liquefaction plant in Lindi, according to energy minister January Makamba.

“Today, I kicked off negotiations for the $30 billion Tanzania LNG project. The project will transform our economy,” Makamba said in a social media post on Monday.

The companies include Shell, Equinor, ExxonMobil, Pavilion Energy, and Medco Energi.

“For the past two months, we’ve worked hard behind the scenes to get here. We’re confident that a final investment decision will come sooner than is traditionally the case,” he said.

Shell and Equinor have earlier this year called on Tanzania to support the stalled LNG export project.

The move came just weeks after President Samia Suluhu Hassan took office.

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

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

The Norwegian firm has with 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 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

LNG as Fuel

Singapore LNG bunkering volumes rise in September

Singapore’s monthly LNG bunkering sales rose in September compared with the same month last year, according to the Maritime and Port Authority of Singapore.
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.