Page 14 - AfrOil Week 45 2022

AfrOil PROJECTS & COMPANIES AfrOil

Energy Minister: Tanzania expects to sign

agreements on LNG project in December

TANZANIA TANZANIA’S Energy Minister January “The project will be designed in such a way
Makamba reiterated on November 7 that his that it will be the cleanest gas project ever,”
country’s government was optimistic about its Makamba remarked. “The gas chemistry itself,
chances of signing a package of agreements in it’s one of the [types of] gas with the lowest CO2
December with Shell (UK) and Equinor (Nor- content in the world.”
way), the foreign shareholders in the Tanzania The Tanzania LNG project envisions the
LNG consortium. development of offshore gas fields – Block
“It’s happening,” Makamba told Bloomberg 2, assigned to Equinor, and Blocks 1 and 4,
in an interview on the sidelines of the COP27 assigned to Shell. These three deepwater off-
international climate summit in Sharm El shore sites hold about 35 trillion cubic feet
Sheikh, Egypt. “In December, we will conclude (991bn cubic metres) of gas, and their output
the conversation. We are in the fiscal package will be processed at an LNG plant slated for
discussions now.” construction near Lindi in southern Tanzania.
The documents slated for signing next This plant will eventually have up to three pro-
month include a final host government agree- duction trains, each capable of turning out up to
ment (HGA), which outlines all the terms of 5mn tonnes per year (tpy).
the Tanzania LNG scheme, as well as the ben- The government of Tanzania began discuss-
efit-sharing agreement and the project law, he ing this massive project, which is expected to
informed the news agency. The parties hope to carry a price tag of about $30bn, with Shell and
take a final investment decision (FID) in Janu- Equinor more than eight years ago. These talks
ary 2025, and this would allow LNG exports to stalled, though, partly because of commercial
begin before 2030, he stated. disputes between the firms and the govern-
Makamba went on to say that Tanzania was ment and partly because Tanzanian President
working with Shell and Equinor to reduce the Samia Suluhu Hassan’s predecessor John Magu-
carbon emissions intensity of the LNG project, fuli made the East Africa Crude Oil Pipeline
which calls for gas to be extracted from three (EACOP) project a higher priority.
deepwater offshore blocks and processed at an Hassan began working to reinvigorate talks
onshore facility. The partners will make use of on Tanzania LNG shortly after she took office
new technologies that minimise the amount of in March 2021. She has been successful, and her
greenhouse gas (GHG) released during produc- administration has already signed a preliminary
tion, he declared. HGA for the project. ™

Rendering of future Tanzania LNG facilities (Image: Equinor)

P14 www. NEWSBASE .com Week 45 10•November•2022