Tanzania LNG Project Set to Unlock Vast Offshore Gas Reserves

Tanzania is on the cusp of unlocking its vast offshore gas reserves, which could become a major driver of industrial growth and energy security. The proposed $42bn Tanzania LNG project, backed by Shell, Equinor, and ExxonMobil, remains the centrepiece of this ambition.

The country currently produces around 226m cubic feet of gas per day, supporting about 42% of national power production. However, estimated recoverable gas reserves stand at 57 trillion cubic feet, with 47 trillion located offshore in the southeast near Mozambique's own huge reserves.

Global LNG demand has been driven up by the Ukraine conflict and US-Iran tensions, increasing competition for new producers like Tanzania. The country's reserves are located on unrestricted shipping lanes to growing markets in India, China, Japan, and South Korea.