Tanzania has completed negotiations with Equinor and Shell as the final agreement preparations are underway.
Reuters cited Tanzania's energy ministry as saying that the parties’ “experts are at work drafting contracts” about the Host Government Agreement and joining blocks 1, 2 and 4, which will provide natural gas for the LNG project."
However, the ministry has not revealed a timeline for when the contracts will be signed.
According to the
Global LNG Database®, Tanzania has already signed a framework agreement with Equinor and Shell which will pave the way for launching the East African country’s proposed 10 MMT/Y LNG export project.
The $30 billion project is also aimed to “bring investment, technology, skills and infrastructure to the country.
“We expect the final investment decision [FID] on the LNG project to be reached in 2025,” said Tanzanian president Samia Hassan.
Since her appointment as President, Hassan has led the drive for global investment into Tanzania with the conclusion of the HGA being one of her government’s priorities and Tanzania has re-stared negotiations on the possible revival of plans to develop the country's LNG project with the involved exploration companies [Equinor, Shell, ExxonMobil] as the country’s energy minister J. Makamba had said that “we’ve worked hard behind the scenes to get here. We’re confident that a Final Investment Decision will come sooner than is traditionally the case."
Earlier, Shell had revealed that the major and its partners made “good progress” with the Tanzanian government in recent months to advance the LNG project.
"We have seen some real quick progress over the last year compared to what had been a much slower progress before and we continue to be hopeful that we can take this project all the way through to FID (final investment decision) at some stage."
Tanzania's Block 2 estimated to hold more than 20 TCF of gas in place, while ExxonMobil also holds a stake. Shell operates Block 1 and Block 4, which are estimated to hold some 16 TCF of recoverable gas reserves. The development of Tanzania's vast offshore gas resources has been held up for years due to regulatory delays.
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