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Tanzania plans to start its first LNG plant in 2028

The Ministry of Energy of Tanzania expects the construction of its first gas liquefaction plant and export terminal to start in 2022 and to be completed in 2028. The government expects to conclude discussions with a consortium of foreign oil and gas companies in September 2019. The consortium, led by Norwegian group Equinor, and include Shell, ExxonMobil, Ophir Energy and Pavilion Energy, would develop the project in partnership with the state-owned Tanzania Petroleum Development Corporation (TPDC). The project would consist of two LNG trains with a combined capacity of 10 Mt/year (13.5 bcm/year).

Tanzania is estimated to hold more than 57.5 tcf (over 1,600 bcm) of recoverable gas reserves but gas production is limited (less than 1 bcm in 2019) and mainly directed to the power sector (0.7 bcm) and to industry (0.2 bcm). The country plans to build a US$1.9bn fertilizer plant that would be commissioned in 2024.

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