LNG legislation underway, says Makamba

Dar es Salaam. After years of waiting, negotiations for the highly anticipated liquefied natural gas (LNG) project in Tanzania was concluded by both parties early in May, Energy Minister January Makamba says a comprehensive set of project laws is currently being drafted.

Speaking at the National Assembly on Wenesday during his ministry 2023/2024 proposed budget reading Mr Makamba said the proposed legislation will soon be submitted to parliament for thorough discussion and eventual approval.

“ Likewise, considering the magnitude and uniqueness of this project, and as a measure to ensure its coordination, monitoring, and effective facilitation for timely and intended benefits, the Government has established a Special Project Office under the Ministry of Energy,” he said.

Earlier this month, Equinor and Shell Tanzania agreed to a deal with the government of Tanzania for the development of the LNG plant after President Samia Suluhu Hassan’s administration decided to expedite the Host Government Agreement (HGA) talks that had stalled for years in the previous administration.

The project costs is estimated at $42 billion (equivalent to Sh98.7 trillion).

“The investors and government are expected to sign an Amended Production Sharing Agreement ( PSA) in June 2023,” thé minister revealed.

Mr Makamba said while the LNG project, a joint venture between the Tanzanian government and international energy companies, aims to tap into the vast natural gas reserves.

“This landmark endeavor is expected to not only transform Tanzania into a major player in the global LNG market but also bolster the nation's economy and create numerous job opportunities.”