Tanzania Liquefied Natural Gas Project

Tanzania Tanzania Liquefied Natural Gas Project
Tanzania Liquefied Natural Gas Project is located in Tanzania
Tanzania Liquefied Natural Gas Project
Location of Tanzania Tanzania Liquefied Natural Gas Project
CountryTanzania
ProvinceLindi, Lindi Region, Tanzania
CityLindi
Coordinates09°57′36″S 39°42′32″E / 9.96000°S 39.70889°E / -9.96000; 39.70889
Refinery details
Commissioned2025 (Expected)

The Tanzania Liquefied Natural Gas Project (TLNGP), also Likong’o-Mchinga Liquefied Natural Gas Project (LMLNGP), is a planned liquefied natural gas processing plant in Tanzania.[1][2]

Location

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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 461 kilometres (286 mi), by road, south of Dar es Salaam.[3] This is about 103 kilometres (64 mi), by road, north-west of Mtwara, the nearest large town.[4]

Overview

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Tanzania has proven natural gas reserves of 57 trillion cubic feet,[5] with at least 49.5 trillion cubic feet of those reserves far offshore in the Indian Ocean.[6] The government of Tanzania through the Tanzania Petroleum Development Corporation, in partnership with the BG Group (a division of Shell), Equinor, ExxonMobil, and Ophir Energy, plans to build an onshore liquefied natural gas export terminal at this location in Lindi.[7]

History

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The first offshore discovery of natural gas in Tanzania was made in 2010.[6] 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.[8] In August 2016, Tanzanian President John Magufuli publicly urged government bureaucrats to fast track the project so that construction could start.[9] The government of Tanzania announced in May 2016 its plan to build a gas pipeline to neighboring Uganda.[10]

Stakeholders

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Talks between the government of Tanzania and the six oil companies involved in the project began in earnest in September 2016.

As of 2022, the oil companies currently involved include:[11]

Also participating in the talks are the following parastatal agencies of the Tanzanian government.[11]

Negotiations

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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".[12] In June 2018, the Tanzanian English-language newspaper, The Citizen, reported that the projected start date was now in 2022.[13][14] In 2022, the government nailed an agreement with the companies for the construction of the LNG. A team of experts is in negotiations with some investors as the project will be executed in Lindi region. [15] The project is all set to begin soon.[16]

Construction

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In May 2019, the EastAfrican newspaper reported that construction was planned to start in 2022 and conclude in 2028, as announced by the Tanzanian Minister of Energy, Medard Kalemani.[17] In June 2022, the government of Tanzania signed agreements with Equinor of Norway and British Shell, reviving discussions and negotiations about moving the project forward. Final investment decision (FID) of this project, whose development cost is projected at US$30 billion, is now expected in 2025.[18]

In May 2023, TanzaniaInvest reported that Jared Kuehl, Shell's Vice President for Tanzania and Country Chair, disclosed that in the coming weeks, the International Energy Companies (IECs) involved in the Tanzania LNG project anticipated signing a Host Government Agreement (HGA) for the onshore elements of the project and a Production Sharing Agreement (PSA) for its upstream component[19]

However, there were no official updates from the parties involved after that announcement. In March 2024, the United States issued a serious warning to Tanzanian authorities regarding delays in finalizing negotiations for the country's lucrative liquefied natural gas (LNG) project[20]

In May 2024, The Citizen newspaper reported that Tanzania's Attorney General raised queries on the draft HGA submitted for his vetting[21]

See also

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References

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  1. ^ Fumbuka Ng'wanakilala (13 November 2014). "Tanzania says LNG project could cost up to $30 bln". Reuters.com. Retrieved 29 April 2024.
  2. ^ James Anyanzwa (3 February 2020). "Tanzania's gas plant and Bagamoyo port top EA's $75.5b mega projects". The EastAfrican. Nairobi, Kenya. Retrieved 7 February 2020.
  3. ^ "Road Distance Between Dar es Salaam, Tanzania And Lindi, Tanzania" (Map). Google Maps. Retrieved 24 August 2022.
  4. ^ "Road Distance Between Mtwara, Tanzania And Lindi, Tanzania" (Map). Google Maps. Retrieved 24 August 2022.
  5. ^ Ford, Neil (30 August 2016). "Gas fuels Tanzania, Mozambique growth". The Africa Report. Retrieved 22 September 2016.
  6. ^ a b Katakey, Rakteem (19 June 2015). "Tanzania Sees Decision on $15 Billion LNG Project in Three Years". Bloomberg News. Retrieved 24 August 2016.
  7. ^ African Influence Exchange (9 February 2016). "Tanzania LNG project makes progress". Mining.com. Retrieved 24 August 2016.
  8. ^ Holter, Mikael (14 February 2014). "Statoil, BG to Build Tanzania LNG Plant in Lindi, Minister Says". Bloomberg News. Retrieved 24 August 2016.
  9. ^ Ng'wanakilala, Fumbuka (23 August 2016). "Tanzania's President Magufuli orders officials to speed up LNG project". The EastAfrican. Nairobi. Retrieved 24 August 2016.
  10. ^ Allan Olingo (28 August 2016). "Tanzania upstages Mozambique on gas". The EastAfrican. Nairobi, Kenya. Retrieved 28 August 2016.
  11. ^ a b Senelwa, Kennedy (18 September 2016). "Tanzania explores construction of LNG plant, export terminal". The EastAfrican. Nairobi. Retrieved 18 September 2016.
  12. ^ Olingo, Allan (14 May 2018). "Tanzania shops for advisers on $30b gas project". The EastAfrican. Nairobi. Retrieved 19 May 2018.
  13. ^ Kamndaya, Samuel (26 June 2018). "Tanzania's Natural Gas Plant Construction to Start in 2022". The Citizen (Tanzania) via AllAfrica.com. Dar es Slaam. Retrieved 27 June 2018.
  14. ^ Mirondo, Rosemary (21 March 2019). "LNG Project On The Right Track: Director". The Citizen (Tanzania). Dar es Salaam. Retrieved 21 March 2019.
  15. ^ "Tanzania: How Tanzania is Bagging Billions in Natural Gas Investments". All Africa. May 3, 2022.
  16. ^ "TANZANIA TO SIGN THE 70TRI/- LNG PROJECT NEXT WEEK". Daily News Tanzania. June 4, 2022.
  17. ^ "Tanzania Says Construction of LNG Plant To Start In 2022" (The EastAfrican Quoting Reuters). The EastAfrican. Nairobi, Kenya. 29 May 2019. Retrieved 29 May 2019.
  18. ^ Nuzulack Dausen and Gwladys Fouche (11 June 2022). "Tanzania signs LNG framework agreement with Equinor and Shell". Reuters. Retrieved 24 August 2022.
  19. ^ TanzaniaInvest (22 May 2023). "Energy Companies Agree Deal for Tanzania's LNG Project, Approvals to Be Signed Soon". TanzaniaInvest. Dar es Salaam, Tanzania. Retrieved 31 May 2024.
  20. ^ TanzaniaInvest (4 March 2024). "LNG Project Delays Could Lead To Investor Withdrawal, U.S. Warns Tanzania". TanzaniaInvest. Dar es Salaam, Tanzania. Retrieved 31 May 2024.
  21. ^ "LNG project: It's back to the negotiating table". The Citizen (Tanzania). Dar es Salaam, Tanzania. 30 May 2024. Retrieved 31 May 2024.
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