Tanzania Inks LNG Framework Agreement with Shell, Equinor

Tanzania Inks LNG Framework Agreement with Shell, Equinor

Tanzania signed a framework agreement with Norway’s Equinor and Britain’s Shell to bring the start of construction of a $30 billion liquefied natural gas (LNG) export terminal closer, Reuters reported.

According to January Makamba, the signing will pave the way for a final investment decision in 2025 on the facility.

Shell’s vice president and board chairman in Tanzania, Jared Kuehl, said at the ceremony that they believe Tanzania has advantages for many reasons, including its strategic location and the possibility of delivering a competitive and investable project.

Equinor and Shell intend to build the LNG plant in the Lindi region of the country alongside Exxon Mobil (XOM.N), Ophir Energy, and Pavilion Energy.

Equinor operates Tanzania’s Block 2, which Exxon Mobil also has a stake in, and which is estimated to contain more than 20 trillion cubic feet (0.6 trillion cubic meters) of gas.

Equinor aims to work on the LNG project with Shell, which operates Block 1 and Block 4, with 16 trillion cubic feet in estimated recoverable gas.

Many of Tanzania’s natural gas discoveries are already used for power generation and manufacturing. The country also has plans to build a fertilizer plant.

It has been estimated that the country can recover 57.54 trillion cubic feet of gas.


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