Saturday, August 24, 2019

Tanzania Builds $30bn LNG Project

July 28, 2019

Medard Kalemani. Pic: Govt of Tanzania

Dr Medard Kalemani, Tanzania’s Minister of Energy, has confirmed the recently announced plans for a syndicate of oil companies to commence construction of the $30bn LNG project in 2022.

In March, the government stated that it planned to complete negotiations with a group of international oil companies in September to develop the project.

Led by Norwegian energy firm, and Platinum Sponsor of the Congress, Equinor, the group also consists of Royal Dutch Shell, ExxonMobil, Ophir Energy and Pavilion Energy.

These international companies will work closely on the project, alongside the state-run Tanzania Petroleum Development Corporation (TPDC).

In a budget presentation to parliament, the Honorable Minister stated that the project aims conclude in 2028 and will have capacity to produce 10 million tonnes per annum of LNG.

Currently, each individual investor of the project is holding separate talks with the government negotiation team. These talks are expected to be finalized within seven months.

According to the Bank of Tanzania, work on the project will increase annual economic growth, which currently stands at around 7%, by another two percentage points.

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