Tanzania Hopes for FID on its Offshore LNG Projects as Discussions with IOCs Commence

Tanzania through its Minister for Energy January Makamba has reported that the government has started negotiations for the $30bn Tanzania LNG project with international oil companies including and Shell, Equinor, Pavillion, ExxonMobil na Ophir.

The IOCs stalled the development of their assets under former Tanzanian President John Maghufuli with the new President Samia Suluhu calling for resumption of negotiations with the companies in May.

Former Minister for Energy Medard Kalemani had thereafter said he hoped to conclude negotiations for a host government agreement and review production sharing agreements by the end of June 2022.

The discussions are focussed at discussing among others a proposed two-train onshore LNG plant to export gas. Tanzania holds about 50 trillion cubic feet of gas offshore in offshore blocks 1, 2 and 4

Between them, Shell and Equinor have discovered about 50 trillion cubic feet of gas in offshore blocks 1, 2 and 4.

Other partners in the projects include Singapore’s Pavilion Energy and Medco Energi of Indonesia.

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