Negotiations for the LNG project in Tanzania involving the International Energy Companies (IEC) have made progress, as claimed by the companies. According to Jared Kuehl, Shell’s vice president and country chair for Tanzania, the energy firms (IEC) have concluded their discussions with the Tanzanian government. Mr. Kuehl stated, “The international energy companies participating in the Tanzania LNG opportunity are satisfied with the completion of important negotiations with the government of Tanzania.”
He further added that, assuming the assurance process is successfully completed in the following weeks, they anticipate signing the Host Government Agreement (HGA) for the onshore aspects of the project and a production sharing agreement (PSA) for the upstream components. However, the Tanzanian government has not yet made an official announcement regarding the conclusion of negotiations with the IEC.
Mr. Kuehl emphasized that the end of negotiations signifies a significant milestone in the lengthy process of implementing the Tanzania LNG project, with the next step involving extensive engineering design work. He expressed the satisfaction of Equinor and Shell, the joint operators, and their commitment to working together with their partners.
Partners involved in the project include ExxonMobil, MedcoEnergi, Pavilion Energy, TPDC, and the Tanzanian government. Charles Sangweni, Tanzania’s lead negotiator, stated that the agreement also addresses land usage and security, describing it as a substantial step towards project implementation. He expressed confidence that if everything goes according to plan, the final investment decision will be reached in 2025.
The government and a consortium consisting of Shell, Exxon Mobil, Equinor, and Ophir Energy signed the initial Host Government Agreement (HGA) in June 2022, paving the way for further discussions in the realization of the $30 billion liquefied natural gas (LNG) project.
