Equinor: Iran war makes Tanzania LNG worth multi-billion dollars more attractive

The disruption of energy flows through the Strait of?Hormuz makes it more attractive to Equinor for them to build a long-stalled liquefied gas?export facility in Tanzania.

The U.S. and Israeli war against Iran is reshaping global energy markets, and Qatar and other Gulf producers are losing their reputations as reliable suppliers in the world as Tehran has struck export facilities and blocked shipments.

The East African nation estimates that the huge Tanzania gas deposit will cost approximately $42 billion to develop and could provide an alternative supply source for Asian customers.

Negotiations that lasted for years

Equinor has been in talks with Tanzania for years over investment terms and conditions. But hopes of a breakthrough were dashed'several times.

At a Tuesday energy conference in Norway, Philippe Mathieu's, Equinor's, head of international operations told reporters that it was important to not?wait to long before putting new LNG volumes onto the market.

Mathieu responded, "Yes. You are producing LNG in a region that is not exposed to geopolitical issues.

Equinor, Shell, Exxon Mobil and Tanzanian national oil company TPDC will be 'joint operators' of the mega-gas project that would unlock 47.13 trillion cubic feet of natural gas.

NAMIBIA OIL EXPLORATION

Mathieu said Equinor hoped to make an "extremely large" oil discovery on Namibia's PEL-90 exploration license, hoping to match the major discoveries made nearby by TotalEnergies and Galp.

Equinor announced last week that it has purchased a 17.4% stake of the Chevron operated prospect, and that exploration drilling will take place in later this year. Reporting by Nerijus Adomiaitis. Terje Solsvik, Mark Potter and Terje Sosvik edited the report.

(source: Reuters)