Tanzania LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.

Tanzania LNG Terminal is a proposed LNG terminal in Lindi Region, Tanzania.


The map below shows the location of the project, in Lindi District, Lindi Region.

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Project Details

  • Owner: Tanzania Petroleum Development Corporation, Equinor, Shell, ExxonMobil, Pavilion Energy, Ophir Energy[1]
  • Parent: Tanzania Petroleum Development Corporation, Equinor, Shell, ExxonMobil, Temasek, MedcoEnergi[1][2][3]
  • Location: Lindi District, Lindi Region, Tanzania
  • Coordinates: -9.96, 39.708889 (exact)
  • Type: Export[4]
  • Trains: 2[5]
  • Capacity: 10 mtpa, 1.43 bcfd (5 mtpa per train)[5]
  • Cost: US$30 billion[6]
  • Financing:
  • Status: Proposed, pre-FID[7]
  • Start Year: 2029-30[8]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day


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.[9][10] Land for the project was already acquired by January 2016, and compensation & resettlement are underway.[11]

Talks are ongoing, and it could be years before a final investment decision (FID) is issued.[12][13]

In May 2019, Tanzania's Energy Minister reported that construction will begin in 2022.[14]

In January 2021, the Norwegian energy company Equinor announced a loss of US$982 million connected to its involvement in the Tanzania LNG terminal.[15] 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.[4]

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.[7] 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.[6] 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?"[16]

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.[17]

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.[8]

Articles and resources


  1. 1.0 1.1 "Baker Botts Hired by the Tanzania Petroleum Development Corporation to Advise on $30 Billion LNG Project | News". Baker Botts. Retrieved 2022-06-06.
  2. Pavilion Energy. Pavilion Energy. Accessed June 2022.
  3. "MedcoEnergi Announces Completion of Acquisition of Ophir Energy plc". www.medcoenergi.com. Retrieved 2022-06-06.
  4. 4.0 4.1 Equinor Stops Tanzania LNG Project, Writes Off $982 Million, LNG Global, Jan. 29, 2021
  5. 5.0 5.1 2020 World LNG Report, page 102, International Gas Union, Apr. 27, 2020
  6. 6.0 6.1 Fumbuka Ng'wanakilala, Tanzania Expects Agreement on LNG Project Within Six Months, Bloomberg, Apr. 29, 2021
  7. 7.0 7.1 Ed Reed, Shell, Equinor call for LNG progress from Tanzania, Energy Voice, Apr. 14, 2021
  8. 8.0 8.1 Pat Davis Szymczak, Tanzania Inks Deal With Shell, Equinor for $30-Billion LNG Terminal, Journal of Petroleum Technology, Jun. 14, 2022
  9. Tanzania explores construction of LNG plant, export terminal, The East African, 18 Sept. 2016.
  10. Tanzania says LNG project could cost up to $30 bln, CNBC Africa, 13 Nov. 2014.
  11. Land deal finalized in preparation for Tanzania LNG project, World Oil, 29 Jan. 2016.
  12. No FID to be made on Tanzania LNG project for at least five years, LNG Industry, 17 Nov. 2016.
  13. Tanzanian government eyes FEED on LNG plant 'soon', Interfax Global Energy, 1 Dec. 2016.
  14. Fumbuka Ng'wanakilala and Nuzulack Dausen, Tanzania says construction of LNG plant to start in 2022, Reuters, May 28, 2019
  15. Impairment at Tanzania LNG Project, Equinor press release, Jan. 29, 2021
  16. Ed Reed, Long haul ahead on Tanzania LNG plans, Energy Voice, May 4, 2021
  17. "'Breakthrough:' Vital agreement on $30 billion Tanzania LNG project could be wrapped up by May | Upstream Online". webcache.googleusercontent.com. Retrieved 2022-06-06.

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