Tanzania has signed a framework deal with two European energy giants – Equinor one of the largest renewable and non-renewable energy operators in Norway and Shell of the United Kingdom. This agreement is the breaking ground on a $30 billion project to explore gas along the country’s coastal regions and export liquefied natural gas (LNG).
A final investment decision is expected by 2025, with operations beginning in 2029-2030 at a liquefied natural gas plant to be built in Tanzania’s southern seaside town of Lindi, according to the agreement announced on Saturday.
“The Tanzania Liquefied Natural Gas Project will have a major impact on our economy,” Makamba said. “Tanzania’s geographical location makes it simple to transfer natural gas to other countries, particularly Asian (countries) eager for new energy supplies. Plans for the LNG project had been blocked for several years under Tanzania’s previous president, John Magufuli. Equinor is utilizing a joint venture with ExxonMobil of the United States.
