Page 6 - GLNG Week 44 2022

GLNG AFRICA GLNG

Tanzania optimistic

about signing HGA for

LNG project in December

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

P6 www. NEWSBASE .com Week 44 03•November•2022