Markets
Tanzania to Start Talks for $30 Billion LNG Project in April
By
Kenneth Karuri
Thu Mar 21 2019 17:33:14 GMT+0100 (CET)Updated on Fri Mar 22 2019 07:32:56 GMT+0100 (CET)
- Equinor, state may sign pact after talks end in September
- Nation has 58 trillion cubic feet of natural-gas reserves
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NG1
Generic 1st 'NG' Future
2.79
USD/MMBtu
-0.03-1.13%
EQNR
EQUINOR ASA
195.05
NOK
-0.15-0.08%
CL1
WTI Crude
59.73
USD/bbl.
-0.25-0.42%
RDSA
ROYAL DUTCH SH-A
2,431.00
GBp
-26.00-1.06%
OPHR
OPHIR ENERGY
57.20
GBp
+0.20+0.35%
Tanzania plans to negotiate terms for developing a $30 billion liquefied natural gas project with companies between April and September, the Energy Ministry said.
The talks are aimed at reaching a so-called Host Government Agreement, the pact that governs the rights and obligations of parties with respect to the development, construction and operation of the project.
Equinor ASA, one of the companies involved, could sign the accord after the talks, according to the emailed statement.
Negotiations between the government and international oil companies, which started in 2017, have so far failed to lead to a deal. The project is meant to enable the export of gas from Tanzania.
The talks will ensure all parties involved will benefit fairly from the project, Energy Minister Medard Kalemani said at a meeting with Equinor executives in Tanzanian capital, Dodoma. Other companies involved in the project include
Royal Dutch Shell Plcand
Ophir Energy Plc.
Equinor is committed to the development of the project, Mette Halvorsen Ottoy, a senior vice president at the company said in the statement.
Tanzanian President John Magufuli said he would pursue partnerships that enable his nation to benefit more from its resources. The country has an estimated 58 trillion cubic feet of natural gas reserves.
(Updates with comment from Equinor in penultimate paragraph.)
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