Page 8 - GLNG Week 45 2022
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GLNG AFRICA GLNG
Tanzania expects to sign
several agreements on LNG
project in December
INVESTMENT TANZANIAN 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 2,
“It’s happening,” Makamba told Bloomberg assigned to Equinor, and Blocks 1 and 4, assigned
in an interview on the sidelines of the COP27 to Shell. These three deepwater offshore sites
international climate summit in Sharm El hold about 35 trillion cubic feet (991bn cubic
Sheikh, Egypt. “In December, we will conclude metres) of gas, and their output will be pro-
the conversation. We are in the fiscal package cessed at an LNG plant slated for construction
discussions now.” near Lindi in southern Tanzania. This plant will
The documents slated for signing next month eventually have up to three production trains,
include a final host government agreement each capable of turning out up to 5mn tonnes
(HGA), which outlines all the terms of the Tan- per year (tpy).
zania LNG scheme, as well as the benefit-shar- The government of Tanzania began discuss-
ing agreement and the project law, he informed ing this massive project, which is expected to
the news agency. The parties hope to take a final carry a price tag of about $30bn, with Shell and
investment decision (FID) in January 2025, and Equinor more than eight years ago. These talks
this would allow LNG exports to begin before stalled, though, partly because of commercial
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.
P8 www. NEWSBASE .com Week 45 10•November•2022
