Fresh negotiations for the construction of a delayed US $30 billion liquefied natural gas project have resumed under the Ministry of Energy.
Around the discussion table there were International Companies taking part in the negotiations. These include, Shell, Ophir, Equinor, Pavillion and ExxonMobil.
The proposed project for the Liquefied Natural Gas Scheme is to be executed in Lindi Region along the Souther Coastline.
“For the past two months we have been working behind the scenes to get here. I am confident a final Investment Decision will be realized sooner.”January Makamba
Upon taking office last March, President Samia Suluhu Hassan directed the Ministry to fast-track delayed investments, on that the plans for an LNG plant on the southern coast and a pipeline connecting offshore fields have been under consideration since 2014.
A Similar Project which was to be undertaken in the neighbouring Mozambique under Total SE, was shelved following insurgent attacks. Now it is left for Tanzania to fill the vacuum in reviving its own LNG Venture.
Already the government had finalized compensation procedures with more than 600 residents of the southern Tanzanian town of Lindi to pave the way for the project.
Previously also, Tanzania together with the interested companies, including Royal Dutch Shell Plc, Exxon Mobil Corp., Sophi Energy Ltd. and Pavilion Energy Pte Ltd, discussed a proposed two-train onshore LNG plant for exporting gas to other countries.
The government envisaged building a pipeline network to connect and distribute gas to more than 10,000 homes and factories, mostly in Dar es Salaam City.
Both Tanzania and Mozambique are said to be Sub-Saharan Africa’s foremost gas frontier-investment destinations following the discovery of over 100 trillion cubic feet of the gas resources within their precincts.
Tanzania has been conducting natural gas exploration for more than 50 years now, with the maiden natural gas discovery in the country made in 1974 on the Songo Songo Island of Lindi. Later, in 1982, a second discovery was made at the Mnazi Bay area of Mtwara Region.
As of now, Tanzania boasts 57 trillion cubic feet of natural gas reserves based on more discoveries recorded between 2010 and 2016.