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Tanzania endorses deal to build Tanzania LNG export project

Equinor, Shell, and Exxon Mobil have reached an agreement with the Tanzanian government for the development of the Tanzania LNG export project worth U$30bn. The agreement includes key elements of a host government and production sharing agreement (PSA), with the signing expected to take place in the coming weeks. The next steps involve detailed engineering design work to advance the project further.

Located in Lindi, the project would consist of a 10 Mt/year (13.5 bcm/year) two-train LNG liquefaction terminal. It would be developed vy Equinor, Shell, ExxonMobil, Medco, Pavilion and TPDC. An initial Host Government Agreement (HGA) for the project was signed in June 2022. The agreement established the fiscal, legal, and commercial terms for the onshore part of the LNG project, and paves the way for a final investment decision (FID), which is targeted in 2025. Construction is expected to last four to six years, for commissioning between 2029 and 2031.

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