Tanzania’s energy ministry said Tuesday it has made a major breakthrough with Shell (NYSE:SHEL) and Equinor (NYSE:EQNR) on negotiations for the construction of a $30B liquefied natural gas terminal.
Minister of Energy January Makamba said talks with Shell (SHEL), Equinor (EQNR) and their partners, which include Exxon Mobil (NYSE:XOM), have been completed on the contractual terms of a critical host government agreement that will underpin the project.
The massive project aims to pipe 40T cf of gas held in deepwater blocks 1, 2 and 4 to a 10M metric tons/year LNG plant in Tanzania’s Lindi region.
Shell (SHEL) operates Tanzania’s Block 1 and Block 4, which hold 16T cf in estimated recoverable gas, while Equinor (EQNR) operates Block 2, in which Exxon (XOM) holds a stake and which is estimated to hold more than 20T cf of gas.
Shell (SHEL) and partner QatarEnergy said Monday they made an oil discovery at a deepwater exploration well offshore Namibia.