Joseph Isangura
Negotiations for Tanzania’s ambitious $42 billion liquefied natural gas (LNG) project in the Lindi Region are reportedly nearing completion, with both the government and international investors optimistic about finalizing an agreement early this year.
The Tanzanian government has been in talks with major energy companies, including Shell and Equinor, to establish a Host Government Agreement (HGA) that balances the interests of all stakeholders. These negotiations, revived in 2021 after a prolonged delay, have reached key milestones, including the signing of initial HGAs.
The proposed LNG complex, located in southern Tanzania, is seen as a transformative project for the country’s economy. Once operational, it is expected to generate over 1,000 jobs during its construction phase, including 500 permanent positions. The project also holds the promise of bolstering Tanzania’s energy production and contributing significantly to government revenue.
During a visit to the proposed project site on Friday, Norway’s Deputy Minister for Foreign Affairs, Andreas Kravik, expressed his country’s support for the venture. “This project is vital, not just for Lindi but for the entire nation. It will enhance energy production, create jobs, and increase government revenue,” he said. Kravik added that Norway, which has strong ties with Tanzania, is committed to ensuring the project’s success.
Equinor Tanzania’s Country Director, Hilde Nafstad, shared similar optimism, stating that the negotiations are progressing well and could conclude soon. “We need to strike a balance that benefits all parties. The proposals currently on the table offer a fair outcome, and we are confident that an agreement will be reached in the coming months,” Nafstad remarked.
Also Read; Brazil’s Leadership Plans for BRICS in 2025
Despite the optimism, the project has faced significant delays over the years, primarily due to prolonged negotiations. However, the recent progress suggests a renewed commitment from both the government and investors to overcome these hurdles. Once agreements are finalized, construction is expected to take four to six years.
The LNG facility will process and liquefy natural gas from Tanzania’s offshore fields, enabling exports to international markets in Asia and Europe. Its strategic location in Lindi positions Tanzania to become a key player in the global energy market.
With its potential to generate jobs, boost revenues, and strengthen the nation’s energy security, the LNG complex represents a major step forward in Tanzania’s economic development and global energy ambitions.
