Summary
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The
project costs is estimated at $42 billion (equivalent to Sh98.7 trillion).
Dar es Salaam. After years of waiting, negotiations for the highly anticipated liquefied natural gas (LNG) project in Tanzania was
concluded by both parties early in May, Energy Minister January Makamba says a comprehensive set of project laws is currently being drafted.Speaking at the National Assembly on
Wenesday during his ministry 2023/2024 proposed budget reading Mr Makamba said
the proposed legislation will soon be submitted to parliament for thorough
discussion and eventual approval.
“ Likewise, considering the
magnitude and uniqueness of this project, and as a measure to ensure its
coordination, monitoring, and effective facilitation for timely and intended
benefits, the Government has established a Special Project Office under the
Ministry of Energy,” he said.
Earlier this month, Equinor and
Shell Tanzania agreed to a deal with the government of Tanzania for the
development of the LNG plant after President Samia Suluhu Hassan’s
administration decided to expedite the Host Government Agreement (HGA) talks
that had stalled for years in the previous administration.
The project costs is estimated at
$42 billion (equivalent to Sh98.7 trillion).
“The investors and government are
expected to sign an Amended Production Sharing Agreement ( PSA) in June 2023,”
thé minister revealed.
Mr Makamba said while the LNG
project, a joint venture between the Tanzanian government and international
energy companies, aims to tap into the vast natural gas reserves.
“This landmark endeavor is expected
to not only transform Tanzania into a major player in the global LNG market but
also bolster the nation's economy and create numerous job opportunities.”
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