Tanzania has announced that its $30bn liquefied natural gas (LNG) project will break ground in 2022.
The construction of a plant and terminal to export gas from the country’s massive offshore deposits has been held up for years by regulatory delays.
The development will be carried by a consortium led by Equinor of Norway, along with Royal Dutch Shell, Exxon Mobil, Ophir Energy, Pavilion Energy and the Tanzania Petroleum Development Corporation.
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They plan to build the plant near the town of Lindi (pictured), in the south of the country.
Medard Kalemani, Tanzania’s energy minister, said in a budget presentation to parliament: "Construction of this project is expected to start in 2022 and will be concluded in 2028. The project will have capacity to produce 10 million tonnes of LNG a year."
Tanzania’s central bank has said that just starting work on the plant would add another two percentage points to annual economic growth of around 7%.
The government is presently holding individual talks with the oil companies to agree a "host government agreement".
Kalemani added that construction of a $1.9bn fertiliser plant would also start in 2021 and would be operational in 2024.
Image: A street in Lindi, Tanzania (Vincent van Zeijst/CC BY-SA 3.0)