Tanzania’s $42 billion liquefied natural gas (LNG) project is nearing approval, as negotiations with investors have been successfully concluded, according to a senior government minister. The project aims to tap into Tanzania’s vast offshore gas resources. The finalized agreements are currently awaiting review and approval, which is expected to take place next month.
Energy Minister January Makamba stated that the agreements will be presented to the government’s cabinet for approval before being officially signed. The amended production sharing agreement is also expected to be signed by LNG investors and the government in June. The minister emphasized the significant impact of the project on Tanzania’s economy, stating that it will bring about a transformation and change the country’s image.
The government intends to enact a special law to closely monitor the progress of the project. In addition to the LNG project, the government plans to increase electricity production from the current capacity of 1,872 megawatts (MW) to 5,810 MW by 2025/26 to meet the growing demand, including contributions from the private sector.
