Tanzania is about to sign a major agreement with several oil and gas companies to export liquefied natural gas (LNG).
The export deal between the African country and groups, including Shell and Equinor, is worth 40 billion dollars, the Tanzanian Ministry of Energy reported during the COP27 climate summit in Sharm el-Sheikh.
The project was previously delayed for years due to difficult negotiations. But now that Europe is diligently looking for alternatives to Russian gas, the project is gaining momentum.
The deal, to be signed next month, includes the final agreement with the host government on the terms of the project. A final investment decision could be taken in January 2025, allowing exports to begin before 2030,” said Minister January Makamba. The gas will be supplied from three blocks to the factory yet to be built. This will have the capacity to produce 15 million tons of LNG per year. The other companies involved are ExxonMobil and Pavilion Energy.
Tanzania and other African countries, including Mozambique and Nigeria, are trying to ramp up gas production. This is happening as the world tries to limit the use of fossil fuels that cause global warming. According to Makamba, Tanzania is doing everything it can to make its gas less dirty by using new technologies.