Tanzania Seeks Partners for $40B LNG Project – The Black Examiner

Summary:

• Tanzania, with vast gas reserves, seeks partnerships for energy projects, notably LNG exportation. It’s launching its fifth oil and gas licensing round to attract foreign investment. Tanzania is emerging as a regional leader in LPG distribution and hosts the upcoming Invest in African Energy forum.

With an estimated 57 trillion cubic feet (tcf) of recoverable gas resources, Tanzania is poised to shine in the East African energy landscape at Invest in African Energy (IAE) 2024, actively seeking partnerships across exploration, development, and processing endeavors.

Since the revelation of substantial offshore gas reserves, Tanzania has embarked on a journey to become a prominent LNG exporter. The flagship Tanzania LNG project, anticipated to handle gas from fields operated by Equinor, Shell, and ExxonMobil, with an output of 10 million metric tons annually, awaits the finalization of a host government agreement to kickstart development.

Shell’s Blocks 1 and 4 boast approximately 16 tcf of gas reserves, while Equinor’s Block 2 has uncovered nine discoveries, tallying over 20 tcf of estimated reserves.

In a significant move last November, Tanzania and Uganda inked a pact to explore the feasibility of constructing a pipeline connecting Tanzania’s gas fields to Uganda.

IAE 2024, organized by Energy Capital & Power, serves as an exclusive platform fostering investment connections between African energy markets and global investors. Scheduled for May 14-15, 2024, in Paris, the event provides a two-day immersive experience for delegates to engage with industry experts, project developers, investors, and policymakers.

Tanzania has emerged as a pivotal player in LPG distribution regionally, leveraging its strategic position on the Indian Ocean and the cutting-edge Kigamboni LPG Terminal, which imports LPG from the Middle East and distributes it via trucks across the broader region.

Taifa Gas of Tanzania is at the forefront of constructing a $100-million LPG facility in northern Zambia, in collaboration with Zambia’s Delta Marimba. Additionally, last November, Tanzania inaugurated its maiden compressed natural gas filling station and conversion center in Dar es Salaam, spearheaded by TAQA Dalbit, a joint venture between TAQA Arabia and JCG Oil & Gas.

Tanzania is gearing up to launch its fifth oil and gas licensing round by June 2024, with licenses set to be awarded by December of the same year.

Though specifics are yet to be revealed, the initial allocation includes 26 oil and gas blocks up for tender, comprising 15 onshore and 11 offshore blocks. Marking the country’s first bid round in over a decade, this initiative aims to catalyze foreign investment in Tanzania’s upstream sector and showcase its highly promising acreage.

Currently, the Chinese national oil company CNOOC, in collaboration with Tanzania Petroleum Development Corporation, spearheads exploration efforts in the country, conducting seismic surveys in deepwater blocks proximate to gas discoveries made by Shell, Equinor, and ExxonMobil.

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