Equinor, Shell, Tanzania complete LNG plant negotiations

Equinor ASA and Shell PLC have completed negotiations with the Tanzanian government for construction of an LNG plant in the country, according to the Tanzanian Ministry of Energy. Contracts to formalize the agreement are now in development.

When last discussed in detail, the 10-million tonne/year plant was to have been built near Lindi on the Tanzanian coast (OGJ Online, Aug. 2, 2021). The Tanzanian government hopes to reach final investment decision on the project during 2025.

Among the topics included in contract development are terms for “joining Blocks 1, 2, and 4,” which will provide natural gas for the project. Equinor has made nine gas discoveries in Block 2 northeast of Lindi offshore Tanzania, with total in-place volumes of roughly 22 tcf. Blocks 1 and 4, operated by Shell, hold an estimated combined total of 16 tcf of recoverable gas.