Tanzania Closes in on $42 Billion LNG Deal with Global Energy Giants

Tanzania is on the verge of finalizing a historic $42 billion liquefied natural gas (LNG) deal with global energy giants Shell, Equinor, and ExxonMobil. This agreement will enable the country to commercialize an estimated 47.13 trillion cubic feet of offshore gas reserves for global export.

The project is expected to generate between $2 billion and $4 billion in government revenue each year, contributing approximately 2% annually to Tanzania's gross domestic product. The LNG plant will have a production capacity of 15 million metric tons per year, primarily serving high-demand Asian markets over a 30-year lifecycle.

The deal represents one of the largest single foreign-direct investments in African energy history and is expected to transform East Africa's energy architecture. The project complements other regional mid-stream initiatives, such as the East African Crude Oil Pipeline, positioning Tanzania as a major gas exporter and evolving its economy from traditional agrarian to maritime and industrial.

Implementation will require significant investment in deep-water infrastructure, subsea pipelines, and coastal processing plants. Balancing capital outlay with environmental stewardship and local-content requirements will be critical to delivering sustainable economic growth across the region.