Tanzania pushes $42 billion LNG venture into final legal phase
Tanzania’s $42 bn LNG project has entered its last round of legal talks, with agreements expected to be signed before June 2027.
The Tanzania Petroleum Development Corporation, led by Mussa Makame, announced that the $42 bn liquefied natural gas project has moved into its final legal stage, with the Host Government Agreements and related legislation being prepared in Arusha. Most commercial, fiscal and revenue-sharing terms have already been settled, covering the project's scale, taxation and profit sharing. Deputy Energy Minister Judith Kapinga said the required LNG investment law could be enacted by the close of 2026, after which parliamentary approval will be needed.
Investors, including Shell, ExxonMobil, Equinor, Medco Energi and Pavilion Energy, will then decide on a final investment commitment. The government is also working on a local-content strategy to increase Tanzanian employment and procurement. The project’s appeal has risen after disruptions in Gulf LNG supplies, making it a potential alternative for Asian buyers.
Why it matters
The deal could transform Tanzania’s economy and reshape global LNG supply chains.
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