Tanzania has finalized a land acquisition for the site of a planned LNG plant, and was now working to compensate and resettle villagers to move forward on a long-delayed project, WorldOil reported. BG Group, being acquired by Royal Dutch Shell, along with Statoil, Exxon Mobil, and Ophir Energy plan to build an onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC) by early 2020s. Their final investment decision has in part been held up by delays.
This is a significant development for oil and gas investors in Tanzania, as it was not expected that a new government would manage to achieve progress on the halted project from end 2015 fast, AllAfrica added.
Tanzania’s natural gas reserves are estimated at more than 55 Tcf and the Central Bank believes 2 percentage points would be added to the country’ annual economic growth of 7% simply by starting work on the huge plant that would draw in billions of dollars of investment, according to RigZone.