Talks between the government and investors on Liquefied Natural Gas (LNG) plant benefits could last for five years, Energy and Minerals deputy minister Medard Kalemani has said.
Negotiations are yet to begin, but they are expected to start “soon”.
Dr Kalemani told The Citizen yesterday that experts from the ministry and the Tanzania Petroleum Development Corporation (TPDC) will negotiate with multinational companies on how the country can benefit from the LNG.
“The team will negotiate on the benefits of the project especially local content, natural gas markets and how much can be consumed locally,” he said.
Tanzania’s deep sea natural gas discovery now stands at 57.27 trillion cubic feet.
Investors in the project include BG Group, being acquired by Royal
Dutch Shell, along with Statoil, Exxon Mobil and Ophir Energy.
They plan to build an onshore LNG export terminal in partnership with TPDC. The project construction will cost Sh63.7 trillion ($30 billion) and is scheduled to end in 2025. It will be undertaken on 20,000 hectares: 18,000 hectares for industrial parks and the remaining for the LNG plant.