Tanzania Liquefied Natural Gas Project
|Province||Lindi, Lindi Region, Tanzania|
The plant would be located on approximately 2,071.705 hectares (5,119 acres) in Likong'o Village in the town of Lindi on the Indian Ocean coast, approximately 460 kilometres (286 mi), by road, south of Dar es Salaam. This is about 103 kilometres (64 mi), by road, north-west of Mtwara, the nearest large town.
Tanzania has proven natural gas reserves of 57 trillion cubic feet, with at least 49.5 trillion cubic feet of those reserves far offshore in the Indian Ocean. The government of Tanzania through the Tanzania Petroleum Development Corporation, in partnership with the BG Group (a division of Royal Dutch Shell), Equinor, Exxon Mobil, and Ophir Energy, plans to build an onshore liquefied natural gas export terminal at this location in Lindi.
The first offshore discovery of natural gas in Tanzania was made in 2010. Since then, other finds have been made by several petroleum prospecting companies, which decided in 2014 to build a liquefaction facility in Lindi, targeting primarily the Asian market. In August 2016, Tanzanian President John Magufuli publicly urged government bureaucrats to fast track the project so that construction could start.
Talks between the government of Tanzania and the six oil companies involved in the project began in earnest in September 2016. The oil companies involved include:
- Equinor ASA (formerly Statoil ASA)
- BG Group
- Royal Dutch Shell Plc
- Ophir Energy Plc
- Pavilion Energy Private Limited
Also participating in the talks are the following parastatal agencies of the Tanzanian government.
- Tanzania Petroleum Development Corporation
- Petroleum Upstream Regulatory Authority
- Tanzania Electric Supply Company
In May 2018, The East African reported that the government of Tanzania was searching for a transaction adviser, to guide the Tanzania Petroleum Development Company through negotiations for a Host Government Agreement with the gas project developers. The two year contract for the selected adviser involves the development of a technical, legal and commercial framework for the LNG project. The adviser is also responsible for supporting and building capacity of the government team, as well as crafting the appropriate strategy in the negotiations towards the "host government agreement". In June 2018, the Tanzanian English-language newspaper, The Citizen, reported that the projected start date was now in 2022.
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