Tanzania LNG Terminal
| Part of the Global Gas Infrastructure Tracker, a Global Energy Monitor project. |
Tanzania LNG Terminal is an LNG export terminal in Tanzania with units that are proposed.
Location
Table 1: Location details
| Name | Location | Coordinates (WGS 84) |
|---|---|---|
| T1 | Lindi, Lindi, Tanzania[1] | -9.96, 39.708889 (exact) |
| T2 | Lindi, Lindi, Tanzania[1] | -9.96, 39.708889 (exact) |
The map below shows the exact location of the terminal:
Project Details
Table 2: Infrastructure details
| Name | Facility type | Status | Capacity | Total terminal capacity | Offshore | Associated infrastructure |
|---|---|---|---|---|---|---|
| T1 | export[2] | proposed[3] | 5 mtpa | 10.0 mtpa | False | – |
| T2 | export[2] | proposed[3] | 5 mtpa | 10.0 mtpa | False | – |
Table 3: Cost
| Name | Facility type | Cost | Total known terminal costs |
|---|---|---|---|
| T1 | export[2] | US$21,000,000,000 | US$42,000,000,000 |
| T2 | export[2] | US$21,000,000,000 | US$42,000,000,000 |
Financing
No financing data available.
Table 4: Project timeline
| Name | Facility type | Status | Proposal year | FID year | Construction year | Operating year | Inactive year |
|---|---|---|---|---|---|---|---|
| T1 | export[2] | proposed[3] | 2016[3] | 2028 (Pre-FID)[4] | – | 2032[5][4] | – |
| T2 | export[2] | proposed[3] | 2016[3] | 2028 (Pre-FID)[4] | – | 2032[5][4] | – |
Ownership
Table 5: Ownership
| Name | Facility type | Status | Owners | Parent companies | Operator |
|---|---|---|---|---|---|
| T1 | export[2] | proposed[3] | Tanzania Petroleum Development Corp; PT Medco Energi Internasional Tbk; Exxon Mobil Corp; Shell PLC; Equinor ASA; Pavilion Energy[6][7][8][9][6][7][8][9][6][7][8][9][6][7][8][9][6][7][8][9][6][7][8][9] | Equinor ASA; Exxon Mobil Corp; PT Medco Energi Internasional Tbk; Shell PLC; Tanzania Petroleum Development Corp; Temasek | Equinor; Shell[8][8] |
| T2 | export[2] | proposed[3] | Tanzania Petroleum Development Corp; PT Medco Energi Internasional Tbk; Exxon Mobil Corp; Shell PLC; Equinor ASA; Pavilion Energy[6][7][8][9][6][7][8][9][6][7][8][9][6][7][8][9][6][7][8][9][6][7][8][9] | Equinor ASA; Exxon Mobil Corp; PT Medco Energi Internasional Tbk; Shell PLC; Tanzania Petroleum Development Corp; Temasek | Equinor; Shell[8][8] |
Background
Since 2010, large natural gas fields have been discovered off the coast of Tanzania. In September 2016, six oil & gas firms involved in extraction in these gas fields (the BG Group, Ophir Energy, Exxon Mobil, Equinor, Shell, and Pavilion Energy) entered into talks with the Tanzanian government about building a liquefied natural gas (LNG) export terminal near the town of Lindi.
The terminal would cost $20-30 billion, and would have two liquefaction trains, with total capacity of 10 million metric tons per year (mtpa), or 1.43 billion cubic feet per day (bcfd). Plans call for construction to be completed in 2021.[10][11] Land for the project was already acquired by January 2016, and compensation & resettlement are underway.[12]
Talks are ongoing, and it could be years before a final investment decision (FID) is issued.[13][14]
In May 2019, Tanzania's Energy Minister reported that construction will begin in 2022.[15]
In January 2021, the Norwegian energy company Equinor announced a loss of US$982 million connected to its involvement in the Tanzania LNG terminal.[16] The future of the project was unclear following this announcement, although media reporting of the Equinor announcement said that the financial viability of the project was not sufficient for Equinor to keep it on its balance sheet.[17]
However, in April 2021, developers Shell and Equinor were appealing to the newly elected Tanzanian government to support LNG projects, suggesting that the project may be back-on-track.[18] By the end of the month, Bloomberg reported that a Tanzanian government negotiation team had been formed ahead of the resumption of talks with the project's investors, and that it was hoping to conclude an agreement within six months.[19] However, industry commentators warned that the government would have to compromise on contractual and regulatory matters if it hopes to secure new investments. Diplomat and lawyer Mwanaidi Maajar has noted: "[Tanzania LNG backers] will be looking at a guaranteed licence that has a certain duration, which cannot be taken away without due process. Companies will want to look at the repatriation of costs. They will also be looking at approval procedures and how to allow expatriates to go in and out. Can decisions be challenged through an appeal or a judicial process, and how quickly can disputes be resolved?"[20]
In March 2022, Upstream reported that the governments talks with Equinor and Shell were progressing, and that a Host Government Agreement (HGA) needed for the project to move forward could be completed by the end of May.[21]
In June 2022, the Government of Tanzania signed a framework agreement with Shell and Equinor as a precursor to the government's issuing of an HGA, expected before the end of the year, which will outline the project's technical, commercial, and legal terms. It was reported that following the signing of the HGA, the project's front-end engineering and design (FEED and pre-FEED) will be completed within three years, a FID would be taken by 2025, and a four to five construction period would follow before the project comes online by 2029–2030.[22]
In May 2023, Equinor, Shell, and ExxonMobil agreed to a Host Government Agreement framework with the government of Tanzania. According to GIIGNL, the agreement includes a regulatory framework, a production sharing agreement, and elements regarding land use and security.[23] The same month, technical analyses showed that the costs of the project could have increased to US$42 billion.[24]
In August 2023, Tanzanian President Samia Suluhu Hassan appointed Doto Biteko as energy minister, replacing January Makamba. This was reportedly done to reshuffle the cabinet ahead of expected approval of the Tanzania LNG Terminal.[25]
As of May 2024, negotiations for Tanzania LNG were delayed by proposed government changes to a financial agreement reached in 2023.[26]
In March 2025, a government official speaking on the condition of anonymity shared that the FID date of 2025 had been pushed to 2028, with first LNG production pushed to 2032 at the earliest.[27]
Articles and Resources
Additional data
To access additional data, including an interactive map of LNG terminals, a downloadable dataset, and summary data, please visit the Global Gas Infrastructure Tracker on the Global Energy Monitor website.
References
- ↑ 1.0 1.1 (PDF) https://www.shell.co.tz/about-us/what-we-do/_jcr_content/root/main/section/call_to_action_copy/links/item0.stream/1699608669870/58f9b5a965fdf3f4f6aab31dfeaa00dffef16a5e/tanzania-gas-and-lng-project.pdf.
{{cite web}}: Missing or empty|title=(help) - ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 https://www.lngglobal.com/equinor-stops-tanzania-lng-project-writes-off-982-million.
{{cite web}}: Missing or empty|title=(help) - ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 http://www.theeastafrican.co.ke/news/Tanzania-talks-with-oil-firms-to-build-gas-plant-and-export-unit/2558-3384922-item-0-sjwbqsz/index.html.
{{cite web}}: Missing or empty|title=(help) - ↑ 4.0 4.1 4.2 4.3 https://www.zawya.com/en/projects/oil-and-gas/africa-region-struggling-to-market-its-oil-and-gas-projects-to-investors-sivkregp.
{{cite web}}: Missing or empty|title=(help) - ↑ 5.0 5.1 https://jpt.spe.org/tanzania-inks-deal-with-shell-equinor-for-30-billion-lng-terminal.
{{cite web}}: Missing or empty|title=(help) - ↑ 6.00 6.01 6.02 6.03 6.04 6.05 6.06 6.07 6.08 6.09 6.10 6.11 https://www.bakerbotts.com/news/2022/01/baker-botts-hired-by-the-tanzania-petroleum-development-corporation.
{{cite web}}: Missing or empty|title=(help) - ↑ 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 https://www.pavilionenergy.com/en/home.
{{cite web}}: Missing or empty|title=(help) - ↑ 8.00 8.01 8.02 8.03 8.04 8.05 8.06 8.07 8.08 8.09 8.10 8.11 8.12 8.13 8.14 8.15 (PDF) https://giignl.org/wp-content/uploads/2023/07/GIIGNL-2023-Annual-Report-July20.pdf.
{{cite web}}: Missing or empty|title=(help) - ↑ 9.00 9.01 9.02 9.03 9.04 9.05 9.06 9.07 9.08 9.09 9.10 9.11 https://www.medcoenergi.com/en/subpagelist/view/12/2941.
{{cite web}}: Missing or empty|title=(help) - ↑ Tanzania explores construction of LNG plant, export terminal, The East African, 18 Sept. 2016.
- ↑ Tanzania says LNG project could cost up to $30 bln, CNBC Africa, 13 Nov. 2014.
- ↑ Land deal finalized in preparation for Tanzania LNG project, World Oil, 29 Jan. 2016.
- ↑ No FID to be made on Tanzania LNG project for at least five years, LNG Industry, 17 Nov. 2016.
- ↑ Tanzanian government eyes FEED on LNG plant 'soon', Interfax Global Energy, 1 Dec. 2016.
- ↑ Fumbuka Ng'wanakilala and Nuzulack Dausen, Tanzania says construction of LNG plant to start in 2022, Reuters, May 28, 2019
- ↑ Impairment at Tanzania LNG Project, Equinor press release, Jan. 29, 2021
- ↑ Equinor Stops Tanzania LNG Project, Writes Off $982 Million, LNG Global, Jan. 29, 2021
- ↑ Ed Reed, Shell, Equinor call for LNG progress from Tanzania, Energy Voice, Apr. 14, 2021
- ↑ Fumbuka Ng'wanakilala, Tanzania Expects Agreement on LNG Project Within Six Months, Bloomberg, Apr. 29, 2021
- ↑ Ed Reed, Long haul ahead on Tanzania LNG plans, Energy Voice, May 4, 2021
- ↑ "'Breakthrough:' Vital agreement on $30 billion Tanzania LNG project could be wrapped up by May | Upstream Online". webcache.googleusercontent.com. Retrieved 2022-06-06.
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedJPT - ↑ Cite error: Invalid
<ref>tag; no text was provided for refs named:1 - ↑ Cite error: Invalid
<ref>tag; no text was provided for refs named:2 - ↑ "https://www.reuters.com/world/africa/tanzania-names-new-energy-minister-oversee-lng-development-2023-08-30/".
{{cite web}}: External link in|title= - ↑ "UPDATE 1-Tanzanian LNG project delayed as government seeks to change terms". Yahoo Finance. 2024-05-06. Retrieved 2024-07-23.
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs named:3
