Tanzania nears agreement on $42bn LNG project after years of delays
Finance Minister Khamis Mussa Omar said on October 13 that Tanzania is nearing an agreement on its long-delayed $42bn liquefied natural gas project, although definitive accords remain unsigned. The project, led by Equinor and Shell, would commercialise offshore discoveries estimated to hold 47.13 trillion cubic feet of natural gas. Tanzania signed a preliminary Host Government Agreement framework with Shell and Equinor in June 2022 but missed a target to conclude definitive agreements before June 2026, and the outstanding arrangements require government approval before the partners can make a final investment decision.
Why it matters: The case shows how unresolved host-government negotiations and pending legislation can delay energy security gains and investment in large gas export projects.