Tanzania’s LNG Plant in Negotiation Phase

Tanzania’s LNG Plant in Negotiation Phase

The process of constructing Tanzania’s envisaged liquefied natural gas (LNG) plant to sit on the land of Lindi Region has now entered the negotiation stage of the Host Government Agreement (HGA), Sweet Crude Reports informed.

BG Group, which was acquired by Royal Dutch Shell, alongside Statoil, ExxonMobil and Ophir Energy, plan to build a $30b onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC) by the early 2020s, reported AfroTrade.

Energy and Minerals Permanent Secretary, Justin Ntalikwa, stated that a team of government experts is currently negotiating with the five companies to set up the LNG facility. Furthermore, Tanzanian President, John Magufuli, directed the Ministry of Energy and Minerals to accomplish whatever was creating bureaucracy so that the investors could begin construction work immediately.

The Minister,  Sospeter Muhongo, informed that negotiations for the LNG project were going on well. “These companies [Statoil and BG Group] have invested heavily and are strongly committed to ensuring that the LNG project brings intended results,” he added.


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