TANZANIA: THE recent high-level visit by Norwegian State Secretary Andrea Motzfeldt Kravik to the proposed Liquefied Natural Gas (LNG) site in Lindi has injected renewed optimism about prospects for finalising investment agreements for the multi-billion-dollar project.
The visit, which included key Tanzanian officials such as the Regional Commissioner, Zainab Telack and the Tanzanian Ambassador to Norway, Grace Olotu, Regional Administrative Secretary Zuwena Omary and the District Commissioner for Lindi District, Vicctoria Mwanziva along with industry leaders from Equinor and Shell, demonstrated strong commitment from both governments to the project’s success.
“That was to tell us we are still interested and committed to the project,” an Economist-cum-Investment Banker Dr Hildebrand Shayo told the ‘Daily News’ about the visit of the Norwegian State Secretary on the planned LNG project site in Lindi Region.
Tanzania is planning a 42 billion US dollar LNG project on the proven natural gas reserves of 57 trillion cubic feet, with at least 49.5 trillion cubic feet of those reserves offshore in the Indian Ocean.
Dr Shayo said the visit signifies a strong commitment from both the Tanzanian and Norwegian governments to the project’s success.
The presence of key officials from both countries, along with industry leaders from Equinor and Shell, underscores the shared interest in moving forward, he said.
The visit also likely served to build confidence among investors, he said noting showcasing the project site and discussing progress with key stakeholders reassured potential investors about the project’s viability and the government’s strong support.
This project holds immense potential for Tanzania, with the potential to create thousands of jobs, generate significant government revenue and improve infrastructure across the country,” said Dr Shayo.
The visiting Norwegian Secretary of State said the Liquefied Natural Gas (LNG) project in Lindi Region, presents an opportunity for significant economic growth, job creation and increased energy security in Tanzania.
With strong international backing from companies like Equinor and Shell and diplomatic support from countries like Norway, the project holds the potential to reshape Tanzania’s energy sector and regional economic landscape.
During his recent tour at the proposed site for the LNG plant, Kravik expressed his satisfaction with Tanzania’s significant progress in advancing this major project.
‘This project marks a pivotal moment in the nation’s energy sector, as well as its broader economic development,” Kravik said, while underscoring the significant progress the country has made.
The deputy minister said a promising job market is expected to emerge from the construction of LNG plant at the cost of 42 billion US dollars (about 104tri/-).
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The investment not only positions Tanzania as a key player in the global energy market but also represents a major move toward economic diversification.
“This project holds great promise, not only in terms of energy production but also in terms of local employment, economic diversification and international cooperation.”
Once completed, the project is anticipated to create approximately 1,500 jobs, including 1,000 contractual positions and 500 permanent ones.
“The Tanzanian government has made remarkable strides. Beyond seeing and approving the designated site, I assure you that we are moving forward to prepare and advocate for the commencement of this grand project in Tanzania,” Kravik stated.
Lindi Regional Commissioner, Zainabu Telack, confirmed that preparations for the LNG project are complete, including the compensation of affected residents and the finalisation of project designs. She said project presents an opportunity for myriads of economic impact and job creation in the region and country at large.
She said the jobs are expected to cover a broad range of roles, from construction workers during the plant’s development phase to skilled positions in operation and maintenance once the plant is up and running.
She is confident that this project will provide a crucial boost to the regional economy, create opportunities for local businesses in the construction, supply and service sectors.
The influx of workers and the infrastructure development required will stimulate local markets for housing, food, transportation and various goods and services.
Experts say the development of Tanzania’s natural gas resources and their transformation into LNG for global markets provides the country with an opportunity to diversify its energy production and reduce its reliance on other sources such as imported fuel.
This could help stabilise energy prices and provide reliable energy for both domestic use and export. Director of Enric Gas Technology Company Limited, Engineer Mercy Chilumba said full scale exploitation of LNG in Lindi will significantly boost gas supply in the country thereby helping Compressed Natural Gas’s (CNG) companies in the country to expand their presence from urban to rural areas.
Eng Chilumba said currently almost all CNG stations are concentrated in towns due to among others low production gas in the country which makes retailers incur high supply cost.
An Economist Dr Isaac Safari based at the Saint Augustine University of Tanzania (SAUT) said the initiative will significantly reduce deforestation caused by many citizens to wooden biomass fuel including firewoods and charcoal.
Also, he said stable availability of gas will cut gas cylinder cost in the country, making them affordable to all rural and urban residents.
The Founding Director of the Centre for Chinese Studies at the University of Dar es Salaam (UDSM), Professor of Economy, Humphrey Moshi said fully exploitation of LNG in the country will diversify energy mix resulting into energy reliability. Jafari Abdul, a Lindi resident, expressed gratitude to the government for its commitment to the ambitious natural gas project.
He highlighted the immense opportunities it presents for local businesses and employment, stating, “Lindi’s economy will flourish as we engage in various business activities and secure jobs at the plant. We thank the government for bringing such a massive project to our region.
” In October last year, Norway’s Equinor expressed commitment to the project. “Our focus now is to agree on the commercial agreements for Tanzania LNG,” Equinor senior vicepresident Nina Koch said on the sidelines of an African oil and gas conference in Cape Town.
“We are very much committed to the project and we will continue to work and have the dialogue with the partnership and government to get alignment,” she said.
The presence of Equinor and Shell indicates the depth of international collaboration on the project. These companies bring both technical knowledge and substantial capital investments.
Their partnership with the Tanzanian government will play a critical role in ensuring the success of the LNG venture, making Tanzania an increasingly attractive destination for energy sector investments.