Gas
Tanzania advances towards finalising $42bn LNG project
Tanzania is nearing the conclusion of negotiations for a $42 billion liquefied natural gas project led by Equinor and Shell.
Key points
- Commercial and fiscal negotiations are largely complete following a stall in 2023.
- The development aims to unlock 47.13 trillion cubic feet of natural gas reserves.
- Wider East African energy projects include regional pipelines and refinery developments.
What happened
Tanzania is moving closer to completing discussions on a $42 billion liquefied natural gas (LNG) development, according to Voice of Nigeria. The project is led by Equinor from Norway and Shell from the United Kingdom.
Talks stalled in 2023 after the government requested modifications to the fiscal framework, focusing on legal provisions, dispute resolution, and revenue-sharing. However, the Tanzania Petroleum Development Corporation announced in September 2026 that commercial and fiscal terms are largely finalised.
Why it matters
The initiative is designed to unlock 47.13 trillion cubic feet of natural gas reserves, potentially positioning Tanzania among the six largest holders of gas reserves in Africa. According to World Bank figures from 2024, electricity use per person in Tanzania stands at 171.4 kWh, compared to a global average of 3708.5 kWh, while access to clean cooking stands at 11 percent.
The project is expected to expand energy supplies, support industrial growth, and generate state revenue, strengthening the country's status in the regional energy sector.
What comes next
Regional energy infrastructure is also progressing elsewhere in East Africa. Uganda anticipates starting crude oil transport through a pipeline to the Tanzanian port of Tanga in 2027. Construction has similarly commenced on a $17 billion refinery in Kenya linked to Nigerian industrialist Aliko Dangote, while Mozambique revives its own LNG ambitions following the restart of a $20 billion project led by TotalEnergies.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Gas is the flexible backbone of many grids and the designated transition fuel in many national plans, from LNG trade to domestic LPG and CNG. Supply security and pricing drive both power reliability and emissions.
49.1% of electricity in Tanzania came from gas in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
