By: Inspenet, November 11, 2022
Tanzania is set to sign key deals with oil majors including Equinor ASA and Shell Plc next month to pave the way for a planned $40 billion liquefied natural gas export project, according to the country’s energy minister, January Makamba.
“It’s happening,” January Makamba said in an interview in Sharm el-Sheikh, Egypt, where she is attending the COP27 international climate summit. “In December, we will conclude the conversation. We are in the discussions of the fiscal package now”.
The project, delayed by years of protracted negotiations, has gained urgency as European countries seek liquefied natural gas projects that could replace Russia’s energy supplies in the long term.
The agreements will include the final Host Government Agreement, which details the terms of the project, the project law and the benefit sharing agreement, Makamba said. A final investment decision could be reached in January 2025, allowing exports to start before 2030, he said.
The gas will be delivered from three blocks to the planned plant with the capacity to produce 15 million tons of liquefied gas per year. The other companies involved are Exxon Mobil Corp. and Pavilion Energy.
Photo: ShutterStock
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