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Tanzania: oil companies to launch LNG commercial framework

International oil companies involved in liquefied natural gas (LNG) projects in Tanzania are in the process of establishing a LNG commercial framework.

According to the Business Week, the framework will define and compare alternative commercial and financial arrangements involving government and the private sector in a way that addresses the unique attributes of the project.

Establishment of the LNG commercial framework

BG Tanzania external relations manager, Patricia Mhondo, told Business Week that the companies have already done the groundwork to establish the LNG commercial framework. Read more…

“The report has been submitted to the government and we are awaiting response,” Mhondo said.

Also commenting on the development, the Statoil senior vice-president and country manager for Tanzania, Oystein Michelson, shared similar sentiments.

Michelson noted that the job of bringing the gas onshore is difficult; however, he said the companies are optimistic it could be done.

Natural gas reserves

Tanzania recently found at least 55 trillion cubic feet of natural gas reserves.

It is reported that the government announced it will conduct an environmental impact assessment at Likong’o Village in Lindi Region where the LNG plant is to be built.

BG Group, which was last year acquired by Royal Dutch Shell along with Statoil, Exxon Mobil and Ophir Energy, plans to build the onshore LNG export terminal in partnership with the Tanzania Petroleum Development Corporation.

Analysts are hopeful that the project is viable and that it will result into a number of opportunities for Tanzanians and investors alike.

“The project only requires transparency and accountability…people’s expectations should be checked and allowed at realistic level…the government should fast track the construction of the project to ensure we enjoy the opportunities available,” professor Haji Semboja from the University of Dar es Salaam economics, stated.


Featured image: 123rf


Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.