Tanzania hopes to complete talks on LNG project by June
Tanzania has begun discussions with investors about tax incentives for a project that is stalled to build a $42 billion plant of liquefied gas in the country. Energy Minister Doto Biteko announced this on Tuesday. He added the talks might be concluded by June.
The mega-gas project in Tanzania is operated by Equinor, Shell, Pavilion Energy, Medco Energi, and Tanzania's National Oil Company TPDC.
Proposed government changes to an agreement reached in financial 2023 have slowed down the development.
Biteko said at the India Energy Week Conference that "the project hasn't ceased, we are currently negotiating the terms on how we can make this project viable for us both."
He said that government incentives will be needed, and the volume of production depends on negotiation.
Biteko stated that he could not say exactly when the negotiations would be completed, but he believed they would be concluded within the current financial year. "I think the negotiations will end between now and the middle of June," a Biteko.
The project will unlock 47,13 trillion cubic feet (47,13 trillion m3) of natural gas reserves in the country.
Biteko reported that Tanzania plans to also launch an exploration licensing rounds for 26 oil blocks and gas on March 5.
Uganda and Tanzania, together with France's TotalEnergies & China's CNOOC are developing a 1,445 kilometre long pipeline to transport Ugandan crude to the coast of Tanzania's Indian Ocean.
Biteko reported that construction of the pipeline is proceeding well. It has been completed to a 47% extent.
He added, "We will probably complete the project in 36 months." (Reporting and writing by Nidhi verma, Shariq khan; editing by Jan Harvey).
(source: Reuters)
