Tanzania close to sealing $42bn LNG partnership after prolonged talks
Tanzania's finance minister said the nation is on the brink of finalising a long-delayed $42bn LNG project, though formal agreements are still unsigned.
Tanzania is nearing a final agreement on a $42bn liquefied natural gas project, according to Finance Minister Khamis Mussa Omar, who described the deal as "almost there" despite the absence of signed definitive contracts. The consortium, headed by Norway's Equinor and Shell, also includes ExxonMobil, Indonesia's MedcoEnergi, Pavilion Energy and the state-run Tanzania Petroleum Development Corporation. After a host-government framework was signed in June 2022, the parties missed a target to close definitive agreements before June 2026.
TPDC Managing Director Mussa Makame reported that commercial, fiscal and revenue-sharing issues are largely resolved, with legal teams finalising the paperwork and related legislation. Deputy Energy Minister Salome Makamba indicated that new LNG investment legislation could be ready by the end of 2026. The project still requires formal government approval before a final investment decision and financing arrangements can be confirmed.
Why it matters
The deal could transform Tanzania's energy sector and boost its role in global gas markets.
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