Tanzania to sign key $40bn LNG-project accords next month

Tanzania will sign key agreements with oil majors including Equinor ASA and Shell Plc next month to pave the way for a planned $40 billion liquefied natural gas export project, according to the nation’s Energy Minister January Makamba.

“It’s happening,” January Makamba said in an interview in Sharm el-Sheikh, Egypt, where he is attending the COP27 international climate summit. “In December, we will conclude the conversation. We are in fiscal package discussions now.”

The project, delayed by years of prolonged negotiations, has gained urgency as European countries look for LNG projects that can be long-term replacements for the energy supplies from Russia.

The accords will include the final Host Government Agreement, which spells out terms of the project, the project law and the benefit-sharing agreement, Makamba said.

—Bloomberg