Hormuz Crisis Revives Stalled LNG Project in Tanzania

The disruption in energy flows through the Strait of Hormuz is making Equinor reconsider its stalled liquefied natural gas (LNG) project in Tanzania.

Equinor's head of international operations, Philippe Mathieu, said the Middle East LNG disruption makes the Tanzania project more attractive because it would produce LNG in an area not exposed to geopolitical challenges.

The Tanzania project, which Equinor and Shell are joint operators of, has been delayed for years due to issues with investment terms and conditions. The project aims to develop Tanzania's massive gas resource, estimated at 47.13 trillion cubic feet, and would provide an alternative source of supply for Asian customers.

Mathieu noted that developing the project now is a good idea because it would not require waiting too long to put new LNG volumes on the market. Equinor also hopes to make a significant oil discovery in Namibia's PEL 90 exploration licence, where exploration drilling is set to take place later this year.