Tanzania's $42 Billion LNG Project Nears Major Investment Milestone

Tanzania's $42 billion liquefied natural gas (LNG) project is nearing a Final Investment Decision (FID) that could be reached within weeks, according to industry sources. The project, backed by Equinor, ExxonMobil, and Shell, has made progress on commercial terms and the tax framework with Tanzanian authorities.

The development would position Tanzania as a new LNG supplier to European and Asian markets, which are seeking additional long-term gas supply due to changes in global energy markets. The project is expected to develop gas resources in Tanzania's offshore Ruvuma Basin and establish the country as an LNG exporter.

Tanzania has struggled to move the project forward for over a decade due to complex commercial negotiations, taxation, and regulatory issues. However, with the involvement of Equinor, ExxonMobil, and Shell, the project is now one of the most significant planned energy investments in East Africa.