Hormuz Crisis Gives Equinor Boost for Tanzania LNG Project

Disruptions to energy flows through the Strait of Hormuz are giving Norwegian company Equinor an opportunity to push ahead with its Tanzania LNG project. On August 25, 2026, Equinor's management stated that the recent crises in the Gulf are strengthening the economic case for the export plant in Lindi, south of Tanzania.

The company is working alongside Shell and other partners on the $42 billion project, which aims to monetize offshore gas reserves off the coast of Lindi. The Tanzanian government has been negotiating with Equinor and its partners over a site for the project, but commercial talks have yet to reach a final agreement.

The Hornuz crisis is reshaping the LNG buyer equation, as rising risk around the Strait undermines the reputation of Gulf producers like Qatar as reliable suppliers. This opens up space for projects like Tanzania LNG, which targets Asian demand centers and has been gaining appeal from buyers seeking to reduce their exposure to Gulf geopolitics.

The Tanzanian government had set a target of signing a host government agreement (HGA) around June 2026, but this deadline was not met. Equinor is now using the Hormuz crisis as leverage to secure the HGA and move forward with the project.