Negotiations with investors for Tanzania’s $42 billion liquefied natural gas (LNG) project have been successfully concluded, a senior government minister has revealed.
The agreements, aimed at tapping into the country’s vast offshore gas resources, are now awaiting review and approval next month, according to media reports.
Energy Minister January Makamba said that the finalised agreements would be presented to the government’s cabinet for approval before being officially signed.
LNG investors and the government are expected to sign an amended production sharing agreement in June as per the Ministry of Energy’s budget speech for 2023/24 available on its website.
However, the minister did not mention this timeline during his speech to parliament.
Makamba highlighted the transformative impact of the $42 billion project on Tanzania’s economy, stating that it would change the country’s image and face.
The government intends to enact a special law to closely monitor the project’s progress.
In a separate announcement, Makamba revealed plans to increase electricity production from the current capacity of 1,872 megawatts (MW) to 5,810 MW by 2025/26 to meet rising demand.
This expansion takes into account ongoing energy projects from various sources, with a strong focus on private sector contributions.
