New Delhi — Tanzania is discussing tax incentives with investors in a stalled project to construct a $42 billion liquefied natural gas plant in the country, Energy Minister Doto Biteko said on Tuesday, adding the talks could be completed by June.
Equinor and Shell are joint operators of the country’s mega gas project, while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania’s national oil company TPDC are partners.
The development has been stalled by proposed government changes to a financial agreement reached in 2023.
“The project hasn’t stopped, we are negotiating on the terms of how we can make the project viable for both of us,” Biteko told Reuters at the India Energy Week conference.
He added that some government incentives would have to be given, and that the production volume depends on negotiations.
“Can’t say when until we complete the negotiations, but I think the negotiations will be complete within this financial year, between now and June,” Biteko said.
The project would unlock 47.13 trillion cubic feet of natural gas deposits in the country.
Tanzania also plans to launch an exploration licensing round for 26 oil and gas blocks on March 5, Biteko said.
Together with France’s TotalEnergies, and China’s CNOOC , Uganda and Tanzania are also developing a 1,445-kilometre-long pipeline to transport Ugandan crude oil to Tanzania’s Indian Ocean coast.
In Cyprus, the ‘frying pan movement’ is turning household waste into a sustainability lesson.
In Cyprus, the ‘frying pan movement’ is turning household waste into a sustainability lesson.
Biteko said construction is progressing well, with the pipeline 47% complete.
“Likely in 36 months we will realize the completion,” he added.
*Nidhi Verma, Shariq Khan; Florence Tan; editing: Jan Harvey – Reuters
This article was originally posted at sweetcrudereports.com
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