Sh70 trillion LNG project already in drafting stage

Dar es Salaam. Energy minister January Makamba met and held talks with Equinor’s senior vice president Nina Koch yesterday, where they expressed satisfaction with the level of implementation of Tanzania’s liquefied Natural Gas (LNG) project.

Teams of negotiation experts from the government and multinational energy companies that will implement the LNG project are currently drafting a final agreement following the completion of discussions last month.(November 2021).

The Sh70 trillion project involves the construction and processing of more than 47 trillion cubic feet of gas discovered in the Indian Ocean in southern regions.

In a statement that was released after the meeting, Mr Makamba said his plea was to see the project being implemented and completed timely.

It stated that Ms Koch had expressed Equinor’s readiness to provide support in the establishment of a Special Office for LNG, which will manage and coordinate the activities of the project during the implementation period.

“In my experience, projects like this one do not easily win the support of both the company and the government. However, this one is different because it has received the endorsement of both the political leadership and all Norwegian citizens,” she said.

While in Tanzania, Ms Koch also had the time to visit the site where the LNG project will be built in Lindi.

While there, she commended the government for its choice of location, saying its closeness to the airport and the sea makes it convenient and will facilitate easy access to transportation for workers and equipment.

She later visited a Lindi technical college where Equinor provided funds for learning materials.

Ms Koch told the minister that her company plans to increase funding to the colleges in order to build capacity for Tanzanians to fully participate in the project.