Tanzania LNG Project Gains Attraction Amid Hormuz Crisis

The Tanzania LNG project has become more attractive due to the ongoing Hormuz crisis disrupting LNG supplies through the Strait of Hormuz, according to Equinor's Executive Vice President for Exploration & Production International Philippe Mathieu.

The $42 billion liquefied natural gas export project in Tanzania is a joint venture between Norwegian energy company Equinor and Shell. The two companies have been negotiating with the Tanzanian government and authorities for years, but progress has been slow. As of this decade, little progress has been made on the project.

Mathieu stated that they don't want to wait too long to bring new LNG volumes to the market, making now a good time to move forward. He also noted that the crisis in the Strait of Hormuz and changing perceptions about Qatar's reliability have made the Tanzania LNG project more attractive. By producing LNG in a region not exposed to geopolitical challenges, they can provide a stable supply.