Tanzania is in discussions with investors over tax incentives to revive a $42 billion liquefied natural gas (LNG) project that has faced delays due to financial agreement changes. Energy Minister Doto Biteko stated that negotiations could be concluded by June, potentially unlocking the country’s vast natural gas reserves.
The project involves joint operators Equinor and Shell, along with partners Exxon Mobil, Pavilion Energy, Medco Energi, and Tanzania’s national oil company TPDC. The government is considering incentives to ensure the project’s viability while determining production volumes through ongoing talks.
Additionally, Tanzania plans to open bidding for 26 oil and gas exploration blocks on March 5. In a separate energy development, Tanzania and Uganda are collaborating with TotalEnergies and China’s CNOOC on a 1,445-kilometer pipeline to transport Ugandan crude to Tanzania’s coast. Construction has reached 47% completion and is expected to be finalized within three years.