Tanzania plans to sign a long-delayed $42 billion liquefied natural gas (LNG) agreement before June, a senior government minister has said.
The project will unlock large gas reserves and could turn East Africa into a key LNG export hub.
Equinor and Shell lead the project as joint operators.
Other partners include ExxonMobil, Pavilion Energy, Medco Energi, and Tanzania’s state oil firm TPDC.
The LNG plant will tap an estimated 47 trillion cubic feet of natural gas.
Production is expected to begin in about eight years once construction starts.
Deal Moves Past Key Hurdles
The project stalled after the government proposed changes to a 2023 financial agreement.
Officials now say talks have progressed and only legal details remain.
“We have concluded commercial discussions,” said Planning and Investment Minister Kitila Mkumbo.
He added that Tanzania needs a special legal framework because of the project’s size.
Mkumbo said the government expects the deal to create more than 100,000 jobs.
He described it as the largest investment project in Tanzania’s history.
Funding Pressure and Political Context
The minister also said President Samia Suluhu Hassan ordered the central bank to sell some gold reserves.
The government needs cash to fund ongoing infrastructure projects.
Gold prices recently hit record highs as investors sought safe assets.
This move could help ease short-term funding pressure.
Tanzania faces reduced foreign support after unrest during last year’s elections.
Several European partners suspended up to $3 billion in development funding.
The government disputes claims that security forces killed more than 1,000 people.
It says the reported figures are inaccurate but has not released its own numbers.
Regional Impact
Alongside Mozambique, Tanzania’s LNG project could reshape East Africa’s energy future.
If completed, it would strengthen exports and attract long-term investment to the region.