Tanzania Finalizes $42 Billion LNG Project With Shell, Equinor as Funding Targets 2028
Updated
Updated · Business Insider Africa · May 11
Tanzania Finalizes $42 Billion LNG Project With Shell, Equinor as Funding Targets 2028
1 articles · Updated · Business Insider Africa · May 11
Summary
$42 billion in LNG investment has been locked in by Tanzania with Shell and Equinor as joint operators, with capital deployment slated for 2028 and first gas targeted for 2034.
15 million tonnes a year of projected exports would make Tanzania a meaningful new supplier, with the government also securing terms to direct part of the gas to domestic industry.
57.54 trillion cubic feet of gas reserves, about 86% offshore, underpin the project, while Tanzania's Indian Ocean access lets cargoes avoid chokepoints that have become more sensitive during the Strait of Hormuz crisis.
Mozambique's LNG sector has been delayed by insurgency and Nigeria's by theft and vandalism, strengthening Tanzania's pitch as a more stable East African export hub.
As renewables get cheaper, is Tanzania's massive 2034 gas project arriving too late to the global energy party?
Tanzania promises stability, but can its gas dream survive rising debt and the shadow of deadly political violence?
The $42 Billion Tanzania LNG Project: Unlocking Economic Growth and Facing the Global Energy Transition
Overview
The Tanzania LNG project, after years of delays, is now set to move forward as of May 2026. Recent progress has seen most commercial discussions concluded, with current efforts focused on finalizing the legal framework for this $42 billion investment. This legal step is crucial due to the project's unprecedented scale. Tanzania’s government has confirmed the deal is essentially done, with formal signing expected soon. The project’s advancement marks a turning point, promising significant economic benefits, job creation, and a boost to Tanzania’s energy sector as it prepares to enter the construction phase.