LNG project inches closer to implementation

DODOMA: THE Liquefied Natural Gas (LNG) project has entered its final legal stage after the government and investors concluded negotiations on commercial, tax and revenue-sharing matters, bringing the longawaited project closer to implementation within the current financial year.

The 42-billion-US-dollar (over 100tri/-) investment has now moved to the final legal process before the agreements are submitted to the government and Parliament under the relevant legislation, Tanzania Petroleum Development Corporation (TPDC) Executive Director Mussa Makame said yesterday.

Briefing reporters in Dodoma on TPDC’s performance during the 2025/26 financial year and ongoing projects for the current financial year, Mr Makame said the government Negotiating Team had already completed discussions with International Energy Companies (IECs) on key commercial issues.

“The gas has already been discovered. The size of the project, tax matters and how revenue will be shared have already been addressed. The only thing remaining is the legislation that will govern implementation of this project,” he said.

Mr Makame said the remaining legal process is expected to be completed during the current financial year, paving the way for implementation of the project at Likong’o in Lindi Region, where production is planned for more than 35 years.

The multinational companies involved in the project include Norway’s Equinor and Shell, alongside partners ExxonMobil, Medco Energy and Pavilion Energy.

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He said the project would create employment opportunities, increase LNG production and strengthen Tanzania’s economy through exports, while ensuring Tanzanians benefit directly from the investment.

Mr Makame said the Prime Minister’s Office had already formed a team to prepare a Local Content Strategy and Plan aimed at identifying opportunities for Tanzanians to participate in the project.

“Therefore, we expect that, in the near future, we will receive feedback from the team, which has already started its work to identify areas in which Tanzanians can participate and how they will be prepared to participate.” He added: “It is not just about having gas; Tanzanians should also derive direct benefits from the implementation of this project.”

The TPDC chief said the corporation would retain ownership and safeguard the national interest throughout the project, while continuing institutional and technical preparations, including strengthening human resources, systems and infrastructure management.

According to him, the project site has already been secured and affected residents compensated. Mr Makame further said TPDC, in collaboration with its partner Maurel & Prom (M&P), had successfully drilled three natural gas wells in the Mnazi Bay Block.

He said two of the wells are production enhancement wells that have already been completed and connected to the natural gas processing chain, while one is an exploration well.

“Together, the two wells have the capacity to produce approximately 65 million cubic feet of natural gas per day, thereby increasing natural gas production capacity and strengthening energy availability in the country,” he said.