Tanzania’s abundant gas resources has encouraged government to initiate a plan to develop a liquefied natural gas (LNG) export plant costing US$30 billion the energy minister said, Engineering News reported.
The location has not been revealed to the public yet, Engineering News reported.
New discoveries of gas and oil in East Africa have stirred an appetite for investors to exploit the resources and export to energy starved Asia.
Large firms such as BG Group, Exxon Mobil and Statoil have already grabbed at the opportunity and have laid roots in Tanzania, Engineering news reported. Together they have plans to invest in a two train LNG plant in the Lindi region of Tanzania, Engineering News.
On Thursday the Energy and Minerals Minister Sospeter Muhongo told media that the finer details of the project is still to be released.
‘The investment in this LNG plant is between $20-billion and $30-billion’
Preparations are underway… we will make formal announcements when everything is ready’.
Muhongo said that the completed LNG system would be the ‘biggest investment in the history of the country’ and the launch was still to be discussed between local government and those energy stakeholders involved in the project, Engineering news reported.
Britain’s BG Group and its partners, Ophir Energy, Exxon Mobil and Statoil plan to invest in a two-train LNG plant in Tanzania’s southern Lindi region, according to energy sources.
Engineering news reported that Muhongo revealed that government was coming to the end of drafting new gas legislation but the details of when it would be submitted to parliament were not mentioned.
‘The gas legislation is about 75% complete. We will make sure the legislation is in place before major investments are made’, he said.
Recent requests made by parliamentary members for all oil and gas contracts to be made public could put brakes on the sectors development. As confidentiality agreements have been signed, nothing can be revealed without investors consent, Engineering news reported.