After nearly 15 years of delays, Tanzania is making a renewed push to launch its ambitious $42 billion liquefied natural gas (LNG) export project, with hopes to finalise agreements before the October 2025 presidential elections.
This long-anticipated project, supported by global energy giants Equinor, Shell, and ExxonMobil, represents a cornerstone of President Samia Suluhu Hassan’s foreign investment strategy.
Discovered more than a decade ago, Tanzania’s vast offshore gas reserves remain largely untapped. Previous administrations struggled to strike a balance between fiscal expectations and investor confidence, repeatedly stalling progress. A framework agreement was signed in 2022, raising hopes that development of the proposed 10 million tonnes per year (MMT/Y) LNG terminal in Lindi would finally begin. However, fresh delays emerged in 2023 following proposed changes to the project’s fiscal terms.
Energy Minister Doto Biteko confirmed that talks with international partners are now focused on resolving three remaining issues: Tanzania’s demand that 3% of the extracted gas be allocated for domestic use, mandatory commitments to local content, and the use of Tanzanian-registered insurance companies.
“If we conclude three outstanding issues, this agreement will be signed in 2025,” Biteko said, underlining President Hassan’s commitment to concluding the deal within her current term.
The project is seen as pivotal not only for Tanzania’s energy exports but also for regional energy security and economic growth. Once operational, the facility could make Tanzania a major LNG supplier to global markets, particularly as European and Asian nations diversify their energy sources.
As global competition for LNG intensifies, Tanzania’s ability to resolve outstanding concerns swiftly and transparently will be crucial to attracting final investment decisions and unlocking the project’s potential.
Further Africa
