Tanzania has said it plans to conclude talks in September with a group of foreign oil and gas companies led by Norway’s Equinor on developing a liquefied natural gas (LNG) project in the East African country. Construction of an LNG export terminal near huge offshore natural gas discoveries in deepwater south of the country has been held up for years by regulatory delays.
“The government has officially decided to begin talks in early April for construction of the LNG project,” Reuters quoted Tanzania’s energy ministry to have said in a statement.
“We are keen to implement this key project for the economy and we plan to … conclude the talks in September this year,” the ministry said.
The country’s central bank believes just starting work on the plant would add another two percentage points to annual economic growth of around seven per cent.
The talks are aimed at negotiating a host government agreement, which is seen as a crucial step towards reaching a final investment decision for the long-delayed project.