Tanzania Liquefied Natural Gas Project

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]

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
Refinery details
Commissioned2025 (Expected)

Location

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

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

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

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

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

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]

See also

References
  1. Reuters (13 November 2014). "Tanzania says LNG project could cost up to $30 bln". CNBC Africa Quoting Reuters. Retrieved 24 August 2016. {{cite web}}: |author= has generic name (help)
  2. James Anyanzwa (3 February 2020). "Tanzania's gas plant and Bagamoyo port top EA's $75.5b mega projects". The EastAfrican. Nairobi. Retrieved 7 February 2020.
  3. Google (24 August 2022). "Road Distance Between Dar es Salaam, Tanzania And Lindi, Tanzania" (Map). Google Maps. Google. Retrieved 24 August 2022.
  4. Google (24 August 2022). "Road Distance Between Mtwara, Tanzania And Lindi, Tanzania" (Map). Google Maps. Google. Retrieved 24 August 2022.
  5. Ford, Neil (30 August 2016). "Gas fuels Tanzania, Mozambique growth". The Africa Report. Retrieved 22 September 2016.
  6. 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. 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. Reuters (29 May 2019). "Tanzania Says Construction of LNG Plant To Start In 2022". The EastAfrican. Nairobi. Retrieved 29 May 2019. {{cite web}}: |author= has generic name (help)
  18. Reuters (11 June 2022). "Tanzania signs LNG framework agreement with Equinor and Shell". Reuters. Retrieved 24 August 2022. {{cite web}}: |author= has generic name (help)
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