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Report: Tanzania could commence talks for $30B LNG project in April

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Report: Tanzania could commence talks for $30B LNG project in April

Tanzania will start to negotiate terms for building a $30 billion liquefied natural gas project with international oil firms between April and September, according to a March 21 report from Bloomberg citing Tanzania's Energy Ministry. The move is part of the current administration's plan, under Tanzanian President John Magufuli, to allow the African country to benefit more from its resources.

The discussions aim to produce a Host Government Agreement, which governs the rights and obligations of the parties relative to the development, construction and operation of the project. Norway's Equinor ASA said it could sign the agreement following the talks.

Equinor's partners in the project include Royal Dutch Shell PLC and Ophir Energy PLC, Bloomberg said.

The project aims to enable gas export from Tanzania, which has an estimated 58 trillion cubic feet of natural gas reserves.