The International Energy Companies (IECs) involved in the Tanzania LNG project, inform that important negotiations with the Government of Tanzania have concluded.
This was shared by Jared Kuehl, Shell’s Vice President for Tanzania and Country Chair, on its LinkedIn account on 19th May 2023.
He explained that “Subject to successful completion of the assurance process over the coming weeks, we anticipate signing a Host Government Agreement (HGA) that covers the onshore elements of the project, and a Production Sharing Agreement (PSA) that oversees its upstream component. This is a significant milestone, on the long path to realising such a major project like Tanzania LNG, with the next steps involving a period of time of detailed engineering design work. Equinor and Shell, as joint operators, are pleased with the steps forward and remain focused on continuing to work together with our partners (ExxonMobil, MedcoEnergi and Pavilion Energy), TPDC and of course the Government of Tanzania.”
For her part, Unni Fjaer, Managing Director of Equinor Tanzania, posted: “Negotiations on key agreements between the international energy companies (IECs) and the Tanzanian government are now concluded, and the documents are now subject to final reviews and approvals before their expected signing in the following weeks. I would like to personally thank the Tanzanian government, the negotiating team from Equinor, Shell, ExxonMobil, Medco, Pavilion and TPDC for their hard work throughout this process. It paves the way for the series of milestones that need to follow to realize this fantastic LNG opportunity for the country and the world.”
The Tanzanian LNG Project is a planned USD 30 billion liquefied natural gas (LNG) processing plant to be located in the Indian Ocean, opposite Tanzania’s main offshore gas exploration sites.
Tanzania has proven natural gas reserves of 57 trillion cubic feet, with at least 49.5 trillion cubic feet (Tcf) of those reserves far offshore in the Indian Ocean.
The Project intends to produce and sell LNG and Domestic Gas between 2030 and 2059.
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