Residents seek education on the multi-billion-dollar LNG project

Lindi. Residents in Lindi Region have urged the government to enhance public awareness and comprehension of the Sh80 trillion Liquefied Natural Gas (LNG) project to be implemented in the region.

The mammoth LNG project designed to process part of Tanzania’s proven 57.54 trillion cubic feet of natural gas reserves will start being executed as soon as the government and investors iron out their differences on the final details of the deal.

The government and investors led by Shell and Equinor concluded talks on several aspects of the Host Government Agreement (HGA) about a year ago.

The areas covered include production-sharing agreements and regulatory framework provisions for the development of the LNG complex.

However, negotiations on the HGA for the proposed project have not been finalised because the government and investors could not agree on several issues.

Reports received by The Citizen say the government was considering a request by the companies that the venue for negotiations be shifted away from Tanzania, among other issues.

Sources also say the government is still weighing a proposal by the companies that proceeds from the planned $42 billion project be banked by foreign financial institutions.

“Apart from requesting withholding tax exemptions, the firms are also proposing that foreign insurance companies be involved in the deal,” a source said.

But, residents from villages surrounding the project area who were convened for a capacity-building forum recently said more research was required to identify opportunities and challenges that would enable their active participation in the value chain.

A resident of Likong’o, Mr Ally Mwitara, said residents living in the area surrounding the project were aware of ongoing discussions between the two sides.

“"This project holds great significance for us, as its initiation will bring relief and economic advancement to individual citizens and the region as a whole,” he said.

Community development officer, Hilda Nyandoa, said farmers and herders should use ongoing delays to strengthen productivity in agriculture and livestock husbandry and actively participate in the value chain.

“They should strive to produce quality products that will be consumed by project implementers once the project commences. The products will give them better prices that will transform their lives and the region at large,” she said.

Mbanja Ward Councillor, Thabiti Ngwame, asked for residents’ patience as the government undertakes legal and economic procedures before the commencement of the project execution for citizens, stakeholders, and the general public to benefit.

A researcher from Haki Rasilimali, Francensi Mkasiwa, who organised the capacity-building training, said citizens have the right to exactly know the reasons for project delays, frequent suspensions, and the new implementation schedule.

“Transparency is required at all stages of project execution by communicating processes to surrounding communities,” said Mkasiwa.

Haki Rasilimali executive director, Adamu Athoni, said during the forum aimed at understanding opportunities and challenges, citizens have raised different concerns, including land issues.

“Their proposals will be submitted to the central and local governments,” he said.

A senior district officer who represented the District Commissioner, Dr Stanford Mwakatage, told participants from the Masasi ya Leo, Likong'o, and Mtomkavu villages in the Mbanja Ward that the ongoing delay was an opportunity for authorities to understand areas of benefit to citizens.

"Environmental impact assessments undertaken in such projects are significant for citizens to understand opportunities and challenges,” he said, calling for citizens’ participation whenever approached.

He said the comprehensive participation of citizens will enable them to be properly prepared and immensely benefit once the project commences.