12 °c
London
Sunday, February 5, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

More delays for Tanzanian LNG

FurtherAfrica by FurtherAfrica
July 25, 2017
in Africa, Commodities, Economy, Energy, Finance, Gas, Government, Mozambique, Natural Resources, Oil, Tanzania
Reading Time: 2 mins read
1.2k 63
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

While Mozambique makes progress on LNG — at least of the floating variety — Tanzania’s gas ambitions received a blow in early July when the government decided to force all existing upstream investors to renegotiate the terms of their contracts and concessions.

The Natural Wealth and Resources and the Natural Wealth and Resources Contracts bills were passed by the Tanzanian Bunge, or parliament, affecting all parts of the oil, gas and mining sectors.

In contrast with his low key predecessors, Tanzania’s current president, John Magufuli, has earned himself the nickname “The Bulldozer” for attempting to push through reforms by sheer weight of personality.

Magufuli was elected in late 2015 on a platform of tackling corruption: 10,000 civil servants were fired following his election, and he has made repeated claims that foreign investors are guilty of tax evasion.

The government has already clashed with gold producer Acacia Mining, after it alleged that the company was exporting far more gold than it was declaring, and the Tanzania Chamber of Minerals and Energy has complained about the short notice and lack of consultation regarding the recent legislation.

Tanzania sits on 57 Tcf of largely undeveloped natural gas reserves, according to official data.

A significant proportion of gas production will be allocated to the domestic power, cement and fertilizer industries, but LNG exports are the centerpiece of the country’s gas development plans.

A consortium of ExxonMobil, Statoil, Ophir, Shell and the state-owned Tanzania Petroleum Development Corporation has been formed to build an LNG plant in Lindi, in the southeast of the country, close to the border with Mozambique.

A draft agreement on the $30 billion project, which would be by far the single biggest investment ever made in Tanzania, was signed between the government and the consortium in April.

However, although Energy and Minerals Minister Sospeter Muhongo has previously suggested that Tanzania is in a race with Mozambique to bring LNG on stream, Tanzania does not appear to be in any rush.

The economy is, in any case, performing well, with average annual growth of 7% since 2010.

While the LNG developers will not welcome the new legislation, which is motivated by a perception that the host nation may not have got as good a deal as it could, they too may be in no hurry to commit.

There is a large amount of LNG capacity under construction around the world and more planned, not least, according to announcements in July, in the world’s largest LNG producing country Qatar.

LNG developers are concerned that LNG prices will remain low, until demand catches up with supply, making a final investment decision on new LNG capacity construction tricky.

Nonetheless, a renegotiation of terms suggests Tanzanian LNG, which has already suffered delays relating to land acquisition and regulatory uncertainty, may slip further down the lengthy waiting list of pre-FID LNG projects.

Source: S&P Global Platts

Related

Tags: ACACIA MiningCementExxonMobilfertilisergoldJohn MagufuliLindiLiquid Natural GasLNGMozambiqueOphirPowerShellSospeter MuhongoStatoilTanzaniaTanzania Chamber of Minerals and EnergyTanzania Energy and Minerals MinisterTanzania Petroleum Development CorporationTanzania presidentTanzanian BungeThe BulldozerTPDCタンザニアモザンビーク坦桑尼亚莫桑比克
ScanSendShare501Tweet313Share88Pin113Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Fintech

Proof of Reserve saves Africa’s crypto Industry from fake blockchain companies

by Web3Africa
February 5, 2023
Travel

Is travelling to Zimbabwe expensive? The truth

by See Africa Today
February 5, 2023
Insight – The rise of Women entrepreneur in Africa
Finance

AfDB provided US$1B to African women entrepreneurs

by FurtherAfrica
February 5, 2023
Travel

Untapped low budget tourist attractions in Nigeria

by See Africa Today
February 4, 2023
Tech

Heifer selects ThriveAgric DigiCow and Brastorne as winners of AYuTe Africa Challenge

by FurtherAfrica
February 4, 2023
Platform Africa 2023
 
Mozambique eVisa
 
MozParks
 

Translate this page

Read the Latest

Fintech

Proof of Reserve saves Africa’s crypto Industry from fake blockchain companies

by Web3Africa
February 5, 2023
0

Third-party auditors conduct crypto audits in blockchain or proof of reserve audits, creating a snapshot of all the company's balances...

Read more

Is travelling to Zimbabwe expensive? The truth

February 5, 2023
Insight – The rise of Women entrepreneur in Africa

AfDB provided US$1B to African women entrepreneurs

February 5, 2023

Untapped low budget tourist attractions in Nigeria

February 4, 2023

Heifer selects ThriveAgric DigiCow and Brastorne as winners of AYuTe Africa Challenge

February 4, 2023

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 100,777 other subscribers.
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?