Tanzania taps Baker Botts to help with LNG talks

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

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

The country is looking to sign a host government agreement with oil and gas firms for the planned LNG project in Lindi, including Shell and Equinor.

Energy minister January Makamba said in November that Tanzania had resumed negotiations with energy firms for the $30 billion Tanzania LNG project.

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

Earlier last year, Shell and Equinor 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 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 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 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

Venture Global to introduce gas to tenth Plaquemines liquefaction block

US LNG exporter Venture Global LNG has received approval from the US FERC to introduce natural gas to the tenth liquefaction block at the Plaquemines LNG terminal in Louisiana as part of the plant’s commissioning process.

Eni: third phase of YPF’s Argentina LNG project requires $20 billion investment

The third phase of YPF's Argentina LNG export project would require an investment of about $20 billion, according to Eni’s COO of global natural resources, Guido Brusco.

Kimmeridge’s Commonwealth LNG seeks expedited approval from FERC

Kimmeridge's Commonwealth LNG is seeking expedited final approval from the US FERC as it looks to make a final investment decision on its planned LNG export plant in Louisiana later this year.

More News Like This

Norway’s Equinor shuts Hammerfest LNG plant for maintenance

Norwegian energy firm Equinor has closed its 4.3 mtpa Hammerfest liquefied natural gas (LNG) export plant for planned maintenance.

Venture Global launches Calcasieu Pass LNG commercial ops

US LNG exporter Venture Global LNG has launched commercial operations at its Calcasieu Pass LNG terminal in Louisiana, some 68 months from its final investment decision and 38 months after production start.

YPF expects more supermajors to join Argentina LNG project, CEO says

Argentina’s state-owned oil and gas company YPF expects more supermajors to become equity partners in the planned Argentina LNG project following a deal with Shell, according to CEO Horacio Marin.

Shell expects Q1 LNG trading results to be in line compared to previous quarter

LNG giant Shell expects trading and optimization results for its integrated gas business in the first quarter of this year to be in line compared with the fourth quarter of last year.