Chibisi Ohakah, Abuja
Tanzania’s Minister for Energy, Dr Medard Kalemani, has promised to provide updates on the recently announced plans for a syndicate of oil companies to commence construction of the $30 billion Liquefied Natural Gas (LNG) project in 2022, during the Tanzania Oil and Gas Congress, holding in October.
A press release from the APO Group said that in March, the Tanzanian government had planned to complete negotiations with a group of international oil companies in September to develop the project.
Led by Norwegian energy firm, and Platinum Sponsor of the Congress, Equinor, the group also consists of Royal Dutch Shell, ExxonMobil, Ophir Energy and Pavilion Energy.
The international companies will work closely on the project, alongside the state-run Tanzania Petroleum Development Corporation (TPDC). The minister who appeared before parliament on budget presentation stated that the project aims to conclude in 2028 and will have the capacity to produce 10 million tonnes per annum of LNG.
Currently, each individual investor of the project is holding separate talks with the government negotiation team. These talks are expected to be finalised within seven months.
According to the Bank of Tanzania, work on the project will increase annual economic growth, which currently stands at around 7%, by another two percentage points.
“Those keen to learn more about the movements in Tanzania’s gas market would find it beneficial to attend the Tanzania Oil & Gas Congress, which brings together key players in Tanzania’s oil and gas value chain,” the release said, adding that delegates at the high-profile event, which takes place in Dar es Salaam on 2 – 3 October 2019, will be the first to hear about Tanzania’s exciting investment opportunities directly from the minister of energy, government representatives, regulators and industry leaders.