Energy companies conclude talks with Tanzania on LNG
President Samia Suluhu Hassan witnesses the signing of the pre-agreement for the LNG project at Chamwino State House, Dodoma in June 2022. Government signatories were Energy minister January Makamba (second left), TPDC chief James Mataragio, while on behalf of the investors were Equinor Tanzania AS vice president and chairperson Unni Merethe Skorstad Fjaer (right) and Shell Exploration & Production Tanzania vice president and chairman Janed Kuehl. PHOTO | EDWIN MJWAHUZI
International Energy Companies (IEC) that are involved in negotiations with the government of Tanzania on the LNG project have said that there has been a breakthrough in talks between the two sides.
In his social media post, Jared Kuehl, Shell's Vice President for Tanzania and Country Chair, said the energy companies (IEC) have concluded the negotiations with the government of Tanzania.
"The international energy companies involved in the Tanzania LNG opportunity are pleased that important negotiations with the government of Tanzania have concluded," wrote Mr Kuehl.
He added: Subject to successful completion of the assurance process over the coming weeks, we anticipate the signing of the Host Government Agreement (HGA) that covers the onshore elements of the project and a production sharing agreement (PSA) that oversees its upstream components.
The Tanzania government is yet to release an official statement about the conclusion of talks with the IEC.
According to him, the conclusion of the talks is an important milestone in the long road toward realizing the Tanzania LNG project, with the next steps involving a period of detailed engineering design work.
"Equinor and Shell, as joint operators, are pleased with the steps forward and remain focused on working together with our partners," he wrote.
The partners include ExxonMobil, MedcoEnergi, Pavilion Energy, TPDC, and the Government of Tanzania.
The deal also involves land use and security, Tanzania's chief negotiator Charles Sangweni said.
"We are happy it is a big step towards the implementation of the project although we have a lot to do. If everything goes well as planned, I am confident that the final investment decision will be reached in 2025," Sangweni told Reuters.
In June 2022, the government and a consortium of Shell, Exxon Mobil, Equinor, and Ophir Energy signed an initial Host Government Agreement (HGA), paving the way for more comprehensive negotiations towards the implementation of its liquefied Natural Gas (LNG) project worth $30 billion.
