Tanzania finalises land deal for delayed LNG project

Tanzania said on Friday it had finalised a land acquisition for the site of a planned liquefied natural gas (LNG) plant and was now working to compensate and resettle villagers to move forward on a long-delayed project.

Tanzania's natural gas reserves are estimated at more than 55 trillion cubic feet (tcf) and the central bank believes 2 percentage points would be added to annual economic growth of 7 percent simply by starting work on the huge plant that would draw in billions of dollars of investment.

BG Group, being acquired by Royal Dutch Shell, along with Statoil, Exxon Mobil and Ophir Energy plan to build the onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC). They aim to start it up in the early 2020s.

But their final investment decision has in part been held up by delays in finalising issues related to the site.

"After securing the title deed, the law requires the owner to pay compensation to the relevant parties based on a valuation done by the chief government valuer," TPDC said in a statement.

TPDC now owns title deed for some 2,071.705 hectares of land that have been set aside for the construction of the planned two-train LNG terminal at Likong’o village in the southern Tanzanian town of Lindi, which is located close to large offshore gas finds.

Another 17,000 hectares of land around the site for the proposed LNG terminal has been allocated for an industrial park.

The land was bought from large landowners and some individual villagers.

Tanzania's new president, John Magufuli, has promised more urgency in decision-making, responding to a frequent complaint from businesses. One example has been delays in finalising a site for the multi-billion dollar LNG plant that will exploit huge offshore gas finds.

Oil companies were unable to gain access to the site until the land purchase, analysts say.

"The next key thing to watch is how quickly a host government agreement is executed between the Tanzanian government, TPDC and IOCs (international oil companies)," Ahmed Salim, senior associate at consultancy Teneo Intelligence, said in a note to clients.

East Africa is a new hotspot in hydrocarbon exploration after substantial deposits of crude oil were found in Uganda and major gas reserves discovered in Tanzania and Mozambique.

Mozambique's plans to build an LNG plant have moved more swiftly. With other LNG projects moving ahead around the world, the best deals for long term gas sales contracts will likely be secured by those who come on stream first, analysts say.

Tanzania finalises land deal for delayed LNG project | Reuters

Hii LNG ikifanikiwa kujengwa Lindi, itaibadilisha Lindi kwa kiasi kikubwa sana, 30bn US $ ( sawa na bajeti ya Tz kwa miaka 3) kuingia kwenye mkoa mmoja si suala dogo.
Waandishi wetu wa Tz hawajui vitu vya muhimu, ingekuwa hii project ipo Kenya ingepigiwa promo ya ajabu sana, nashangaa magazeti ya nyumbani yanang'ang'ania na habari za siasa uchwara siku nzima.

mtanzania1989 said:

Hii LNG ikifanikiwa kujengwa Lindi, itaibadilisha Lindi kwa kiasi kikubwa sana, 30bn US $ ( sawa na bajeti ya Tz kwa miaka 3) kuingia kwenye mkoa mmoja si suala dogo.
Waandishi wetu wa Tz hawajui vitu vya muhimu, ingekuwa hii project ipo Kenya ingepigiwa promo ya ajabu sana, nashangaa magazeti ya nyumbani yanang'ang'ania na habari za siasa uchwara siku nzima.

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una uhakika pesa zote zitaingia lindi?

idoyo said:

una uhakika pesa zote zitaingia lindi?

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Hiyo 30bn US $ ni gharama za mradi, fedha nyingi itaenda wapi ni swali tata kidogo, ila ni wazi makampuni ya nje ndio yatapewa tender nyingi za masuala ya utaalamu. Kwa hiyo jibu fupi ni ndio pesa yote hii itawekwa Lindi ila wanufaika wakubwa wa tender hizo wanaweza wasiwe watu wa Lindi au watanzania ki ujumla.
Kuhusu Lindi kufaidika , hilo lipo wazi, hotel zitajengwa, airport ya Lindi itaboreshwa, miundombinu na huduma za kijamii zitaboreka maradufu, ajira nyingi zitatengenezwa, huu ni mradi mkubwa sema haupewi airtime tu.

idoyo said:

una uhakika pesa zote zitaingia lindi?

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30B dollars ni approximate project cost ya ujenzi wa liquefaction plants. Total project cost inaweza kuwa zaidi probably up to 45B kwa maana ya kazi za upstream na kusafirisha gesi mpaka onshore kwenye plants. Gharama zitaenda wapi ni wazi a big chunk zitalipwa kwa kununua teknolojia ,makampuni ya yatakayotoa ushauri wa kitaalamu kwa mradi ( consultants)na pia wajenga mradi ( contractors ). Kwa Lindi, spill over effect itakua kubwa. Investors wanawabanwa na local content policy pia. Ni wazi Lindi will be transformed.

goldensylva said:

30B dollars ni approximate project cost ya ujenzi wa liquefaction plants. Total project cost inaweza kuwa zaidi probably up to 45B kwa maana ya kazi za upstream na kusafirisha gesi mpaka onshore kwenye plants. Gharama zitaenda wapi ni wazi a big chunk zitalipwa kwa kununua teknolojia ,makampuni ya yatakayotoa ushauri wa kitaalamu kwa mradi ( consultants)na pia wajenga mradi ( contractors ). Kwa Lindi, spill over effect itakua kubwa. Investors wanawabanwa na local content policy pia. Ni wazi Lindi will be transformed.

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niliyemnukuhu hapo juu halifahamu hilo. anadhani pesa zote zitabaki lindi! nusu ya hizo pesa zitarudi west, ambapo wadau wa kiwanda wanatoka. huko watakopa na consultants & contractors wanatoka huko. china pia watafaidi. local content policy itawabana kwa masuala ya huduma, spill over itakuwa kubwa kwa kukuzwa kisiasa kama ilivyotokea mtwara.

Ndiyo ni kweli sehemu kubwa ya fedha za mradi zitarudi kwa wenye mradi lakini pia itategemeana na masharti na kanuni za Mikataba baina ya Makapuni ya Uwekazaji wa Mradi na Serikali. Ikumbukwe huu siyo Msaada wala Mkopo , bali ni Mradi wa Uwekezaji ambao both parties have to benefit. Inatakiwa Mkataba uwezeshe Serikali kufaidika zaidi.
Kwa hiyo cha Msingi Mikataba iwe wazi na yenye Manufaa kwa Serikali na kwa matinki hiyo Wananchi wa Lindi na Tanzania kwa ujumla. Pamoja na hilo kuna manufaa mengine ya ambayo yatakuwa ni kwa Wananchi moja kwa moja kama vile fidia ya ardhi, biashara za vyakula nk. Angalizo Uwekezaji wa Wachina ni wa mazingira rahisi na rafiki zaidi kuliko wa nchi za Magharibi. Hivyo wakati wa kufanya tathimini waangalie hilo.

mtanzania1989 said:

Hiyo 30bn US $ ni gharama za mradi, fedha nyingi itaenda wapi ni swali tata kidogo, ila ni wazi makampuni ya nje ndio yatapewa tender nyingi za masuala ya utaalamu. Kwa hiyo jibu fupi ni ndio pesa yote hii itawekwa Lindi ila wanufaika wakubwa wa tender hizo wanaweza wasiwe watu wa Lindi au watanzania ki ujumla.
Kuhusu Lindi kufaidika , hilo lipo wazi, hotel zitajengwa, airport ya Lindi itaboreshwa, miundombinu na huduma za kijamii zitaboreka maradufu, ajira nyingi zitatengenezwa, huu ni mradi mkubwa sema haupewi airtime tu.

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suala la pesa nyingi zitaenda wapi sio tata hata kidogo. chukulia mfano wa dangote; USD 500M zilizoingizwa pale, nyingi zimeenda nje. kwanza ni kampuni ilopewa tenda, sinoma ya china. kisha mitambo iloagizwa nje, chuma na nondo, mafuta, vipuri, mpaka sigara zimetoa nje (uchina), nyaya za umeme, plastic, makaa ya mawe, n.k. walau cement ilojenga pale ni ya ndani. kwa mfano huo tu, fikiri kuhusu hicho cha gesi.

mtanzania1989 said:

Hii LNG ikifanikiwa kujengwa Lindi, itaibadilisha Lindi kwa kiasi kikubwa sana, 30bn US $ ( sawa na bajeti ya Tz kwa miaka 3) kuingia kwenye mkoa mmoja si suala dogo.
Waandishi wetu wa Tz hawajui vitu vya muhimu, ingekuwa hii project ipo Kenya ingepigiwa promo ya ajabu sana, nashangaa magazeti ya nyumbani yanang'ang'ania na habari za siasa uchwara siku nzima.

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Umesahau pia habari za Idriss, Wema, Diamond wakati hawana umuhimu wowote katika taifa.

Waandishi wa matukio tu ndio tatizo, kama muda huu wote wametega Bungeni. Hawafanyi uchaguzi, utafiti na wala hawataki kuandika vitu positive kwa Taifa lao wenyewe ila wako tayari kusifia Nchi nyingine. Very disappointing!

I mean Hawafanyi uchunguzi wala utafiti