Equinor Sees Opportunity in Tanzania LNG Amid Middle East Disruption

The ongoing US-Israeli war with Iran is reshaping the global energy industry, causing disruptions to energy flows in the Strait of Hormuz. This situation has made it more attractive for Equinor to develop a long-stalled liquefied natural gas export plant in Tanzania.

The Tanzanian LNG project, which was discovered over a decade ago, is expected to cost around $42 billion to develop and would provide an alternative source of supply for Asian customers. Equinor's head of international operations, Philippe Mathieu, stated that the Middle East LNG disruption makes the Tanzania project more attractive because it would not be exposed to geopolitical challenges.

The project involves joint operators Equinor and Shell, as well as partners Exxon Mobil, Pavilion Energy, Medco Energi, and Tanzania's national oil company TPDC. The Tanzanian gas deposit is estimated to unlock 47.13 trillion cubic feet of natural gas deposits.