Tanzania progresses with LNG development


The government of Tanzania recently concluded talks with Shell and Equino regarding the construction of a $30bn LNG facility that will tap into the East African country’s huge offshore natural gas resource.

Tanzania’s Energy Minister January Makamba said: “One contract is being drafted for the Host Government agreement, another is for blocks 1,2, and 4, which will provide gas for the LNG project.”

In 2016, Shell, along with with partners Medco Energi (Ophir Energy) and Pavilion Energy, purchased BG Group to become the operator of two offshore blocks (Block 1 and Block 4). To date, nearly 16 TcF (trillion cubic feet) have been discovered in the blocks.

Similarly, Equinor began exploratory drilling in 2011 and has made nine discoveries (estimated 20 Tcf) so far. Slowed by regulatory hurdles, the talks promise hope that Tanzania and the majors will begin to monetise their investment in the late 2020s to early 2030s.

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