Page 14 - AfrOil Week 44 2022

AfrOil PROJECTS & COMPANIES AfrOil

Energy minister: Tanzania optimistic about

signing HGA for LNG project in December

TANZANIA TANZANIA’S Energy Minister January programme and the third Five Year Develop-
Makamba said on October 27 that his country’s ment Plan (FYDP III), the report noted.
government was still on track to sign a final host As noted above, the Tanzania LNG project
government agreement (HGA) with Equinor envisions the development of offshore gas fields
(Norway) and Shell (UK), the foreign share- – Block 2, assigned to Equinor, and Blocks 1
holders in the Tanzania LNG consortium, in and 4, assigned to Shell. These three deepwater
December. offshore sites hold about 35 trillion cubic feet
According to Makamba, negotiations on the (991bn cubic metres) of gas, and their output
Tanzania LNG project, which will involve the will be processed at an LNG plant slated for con-
development of offshore natural gas fields and truction near Lindi in southern Tanzania. This
the construction of an onshore LNG plant, are plant is not expected to come on stream before
going well and making progress. The govern- 2028 at the earliest.
ment remains optimistic about the prospects Tanzania’s government began discussing this
for finalising the deal before the end of 2022, he plan with Shell and Equinor more than eight
said. years ago. But the project fell behind schedule,
“We’re getting there. We’re nearer now. We partly due to commercial disputes between the
have confidence we will sign it in December,” firms and the government and partly because
the minister was quoted as saying by Tanzania Tanzanian President Samia Suluhu Hassan’s
Daily News. predecessor John Magufuli made the East Africa
He was speaking at an event marking the Crude Oil Pipeline (EACOP) project a higher
publication of a study of the macroeconomic priority. Suluhu began working to reinvigorate
impact of the Tanzania LNG project by Nigeria’s talks on Tanzania LNG shortly after she took
Stanbic IBTC Bank. office in March 2021. ™
The Tanzanian government has already
signed a preliminary HGA for the project. The
partners hope to make a final investment deci-
sion (FID) by 2025.
Tanzania LNG is expected to carry a price tag
of about $30bn, so it will attract no small amount
of direct investment into the host country’s
economy. But the project will also have exten-
sive knock-on effects. According to the Stanbic
report, it will also bring $7bn-$15bn per year
into the Tanzanian economy, thereby boosting
long-term GDP growth rates by 6.0-7.5%.
This is in line with the objectives of the
government’s 2025 Development Vision The Tanzania LNG project may cost $30bn (Image: TanzaniaInvest.com)

APT may be able to launch Ntorya gas

production early despite drilling delays

TANZANIA ARA Petroleum Tanzania Ltd (APT), the oper- setback in its drilling schedule.
ator of the Ruvuma licence area in southern According to a statement from Aminex (Ire-
Tanzania, is looking to launch commercial pro- land), a non-operating shareholder in Ruvuma,
duction at the Ntorya natural gas field almost a APT has recently pushed the target date for
year ahead of schedule. The cimpany has said it spudding the Chikumbi-1 (CH-1) well at Nto-
expects to meet its existing deadlines despite a rya back to March 2023.

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