Hormuz Crisis Gives Boost to $42-Billion Tanzania LNG Project
The ongoing Hormuz crisis has made the Tanzania LNG project more attractive for development, according to Philippe Mathieu, Executive Vice President of Exploration & Production International at Equinor. The $42-billion project aims to connect natural gas discoveries offshore Tanzania with an export terminal on its coast.
Equinor and Shell, joint operators of the project, have been locked in negotiations with the Tanzanian government for years. The provisional project has not advanced much this decade, despite initial estimates suggesting it could be the country's biggest foreign investment.
The crisis in the Middle East has led to a disruption in liquefied natural gas supply through the Strait of Hormuz. Mathieu believes that producing LNG in Tanzania would minimize exposure to geopolitical challenges, making the project more attractive now than ever before.