LNG

Tanzania is advancing a USD 42 billion Liquefied Natural Gas (LNG) Project at Likong'o, Lindi, designed to monetize 57 trillion cubic feet of offshore gas reserves and produce 10 million metric tonnes of LNG annually.

The Tanzania LNG Project, also known as the Likong'o-Mchinga LNG Project, is positioned as a flagship energy initiative to establish the country as a regional leader in gas monetization, energy security, and industrial power supply.

Negotiations with international investors including Shell and Equinor are progressing, with a final investment decision targeted for 2026.

Once operational, the facility will enable Tanzania to export liquefied natural gas to international markets, meeting growing global demand for cleaner energy sources.

The Tanzania LNG Project at Likong'o, Lindi

The Tanzania LNG Project is a planned USD 42 billion venture designed to monetize offshore natural gas reserves estimated at 57 trillion cubic feet.

Gas will be transported via subsea pipelines from deep offshore fields to a processing plant and export terminal at Likong'o, in Lindi Region, on the coast of the Indian Ocean.

The facility is expected to produce 10 million metric tonnes of LNG annually.

Negotiations with investors including Shell and Equinor are progressing, with a final investment decision targeted for 2026.

Once operational, the project is expected to generate substantial Government revenue, create thousands of jobs, and strengthen Tanzania's energy security and export capabilities.

Project Scope and Infrastructure

The LNG Project involves drilling development wells in deep offshore fields, constructing subsea pipelines to transport gas onshore, and building an LNG plant with jetty loading facilities.

Once operational, the project will enable Tanzania to export liquefied natural gas to international markets, meeting growing global demand for cleaner energy sources.

The project complements Tanzania's broader natural gas infrastructure, which includes four processing plants with a combined capacity of 470 million standard cubic feet per day (MMscfd) and a transmission system of three pipelines totaling 815 km.

In July 2025, the Government also awarded the engineering, procurement, and construction (EPC) contract for a new gas pipeline connecting the Ntorya gas field to the Madimba Gas Processing Facility, reinforcing the upstream feeder network.

Strategic Role in Tanzania's Energy Landscape

The Lindi LNG Project is listed among Tanzania's Flagship Projects, positioning the country as a regional leader in gas monetization, energy security, and industrial power supply.

Alongside the East African Crude Oil Pipeline (EACOP), the LNG Project is a central pillar of Tanzania's ambition to become a critical link in the regional energy supply chain.

Providing a reliable power supply to strategic projects such as the SGR, EACOP, and LNG is an explicit Government target within the national energy planning framework.

Tanzania is also pursuing cross-border transmission projects to supply natural gas to Kenya and Uganda, expanding the regional footprint of its gas economy.

Policy Framework and Government Direction

The Ministry of Energy (MOE) coordinates the LNG Project alongside the Tanzania Petroleum Development Corporation (TPDC) and the Petroleum Upstream Regulatory Authority (PURA).

The project is anchored in Tanzania's national planning architecture as a Flagship Project designed to monetize the country's offshore gas reserves and strengthen export capacity.

In March 2026, the MOE directed TPDC to introduce new blocks to further attract capital into the country's oil and gas exploration and production.

The Government is actively seeking strategic partners with technical and financial capacity for several specific areas, including Mnazi Bay North, Songo Songo West, and Blocks 4/1B and 4/1C.

Investment Opportunities in LNG

The headline opportunity is direct participation in the USD 42 billion Likong'o-Mchinga LNG Project, with a final investment decision targeted for 2026 and negotiations already advanced with major international operators.

Downstream, investment opportunities include the development of mini-LNG projects to transport gas via special trucks to regions not reached by pipelines.

Additional opportunities exist in LNG infrastructure, gas processing, and exports, leveraging Tanzania's 57 trillion cubic feet of natural gas reserves.

Adjacent openings span the establishment of chemical and petrochemical industries, crude oil refining with efficient export facilities, and processing plants for refined petroleum derivatives.

New exploration acreage in Mnazi Bay North, Songo Songo West, and Blocks 4/1B and 4/1C offers upstream entry points for partners with technical and financial capacity to feed future LNG volumes.

Preferential market access under AGOA, EPAs with the European Union, and the UK's Developing Countries Trading Scheme further strengthens the export case for Tanzanian LNG and downstream petrochemical products.

Last Update: May 2026

References

1. https://www.ewura.go.tz/uploads/documents/en-1771937532-Electricty%20Sub-Sector%20Performance%20Updates_Dec_2025.pdf (Guide reference #15)
2. https://www.nishati.go.tz/uploads/documents/en-1758611412-POWER%20SYSTEM%20MASTER%20PLAN%202024.pdf (Guide reference #97)
3. https://www.nishati.go.tz/uploads/documents/en-1754048957-National%20Renewable%20Energy%20Strategy%202024%E2%80%932034.pdf (Guide reference #99)
4. https://www.nishati.go.tz/uploads/documents/en-1754049550-National%20Renewable%20Energy%20Strategy%202024%E2%80%932034.pdf (Guide reference #102)
5. https://www.nishati.go.tz/uploads/documents/en-1717415585-EAPCE25%20FIRST%20CIRCULAR.pdf (Guide reference #103)
6. https://www.tpdc.co.tz/news/energy-ministry-permanent-secretary-urges-tpdc-to-strengthen-natural-gas-investment (Guide reference #104)