Page 8 - GLNG Week 18 2022

GLNG AFRICA GLNG

Tanzania hopes to sign

initial agreements on LNG

projects by May 31

TANZANIA TANZANIA’S government expects to sign initial agreement (PSA) framework.
agreements with five international oil companies The Tanzania LNG scheme is a partner-
(IOCs) on a TZS70 trillion ($30bn) LNG project ship between the Tanzanian government and
by the end of May, local daily The Citizen reports. five companies, including Shell (UK), Equinor
Charles Sangweni, acting director-general of (Norway) and ExxonMobil (US). It envisions
the Petroleum Upstream Regulatory Authority the construction of an onshore gas liquefaction
(PURA), said during a visit to the Mnazi gas-pro- plant in Lindi, a port in the southern part of the
cessing plant that the parties were committed to country. The plant will have two or three produc-
the project and that negotiations were on track. tion trains with a capacity of 5mn tonnes per year
“It is a process, and we believe we will attain (tpy) each.
our goals. We expect that by May 31 [of] this The Tanzania LNG plant will secure its feed-
year, we will have entered into the initial Host stock from Block 1 and Block 4, two offshore
Government Agreements (HGAs), which will fields operated by Shell, and Block 2, operated
pave the way for more comprehensive negotia- by Equinor. (ExxonMobil also holds a stake in
tions,” he was quoted by The Citizen as saying. the latter site.) These three deepwater offshore
The negotiations are expected to take two to sites hold more than 35 trillion cubic feet (991bn
three years to complete before a final investment cubic metres) of gas.
decision (FID) is made, after which project fund- Tanzania, East Africa’s second-biggest econ-
raising will commence, Sangweni continued. He omy, is estimated to have gas reserves of 57 tril-
also said that the actual construction of the plant lion cubic feet (1.614 trillion cubic metres). It is
was likely to take four to five years. currently producing around 110bn cubic feet
Negotiations on the project resumed late (3.12 bcm) per year of gas from the Songo Songo,
last year, following their suspension in August Mnazi Bay and Kiliwani North fields.™
2019 by the government, which cited the need
to review the country’s production-sharing

P8 www. NEWSBASE .com Week 18 06•May•2022