Tanzania expects agreement on US$30B LNG project within six months
Tanzania expects agreement on US$30B LNG project within six monthsStaff by Staff April 30, 2021 Reading Time: 2 mins readTanzania Total oil pipelineTanzania expects to conclude an agreement for a US$30B liquefied natural gas project within six months after the country’s new president called for a resumption of negotiations that had stalled for more than a year.Talks for the host government agreement, or HGA, that will govern the tax, legal and commercial terms for the proposed two-train onshore LNG project fell apart in 2019. Plans for a plant on Tanzania’s southern coast connected to offshore fields by pipeline have been under proposal since 2014.“The government’s negotiation team has already been formed ahead of the resumption of talks and we will be preparing from next week to restart negotiations with the investors as soon as possible,” James Mataragio, managing director of the Tanzania Petroleum Development Corp., said Thursday by phone.Investor sentiment over Tanzania soured after the administration of former President John Magufuli overhauled mining legislation and ordered contracts renegotiated afresh. His successor, Samia Suluhu Hassan, told lawmakers last week the talks over the LNG plant had dragged on too long and pledged to finish them speedily so the project can be implemented.
Source: Further Africa