Dodoma — Tanzania says it is close to launching its long-delayed liquefied natural gas (LNG) project after years of negotiations with international investors.
Speaking in Parliament at the close of the budget debate for the Ministry of Energy, Energy Minister Deogratius Ndejembi said the government had finalized commercial and tax agreements with investors, leaving only the final legal arrangements to be signed.
“Commercial agreements have been reached, tax agreements have been reached, and now we are at the legal stage,” Ndejembi said.
To reassure lawmakers that the project is nearing completion, he added that senior executives from Equinor, ExxonMobil and Shell are expected in Tanzania next week for the final round of negotiations.
In June 2022, the Tanzanian government signed a framework agreement with Equinor and Shell outlining the rights and obligations of all parties involved in the planned investment. However, the final agreements have faced repeated delays.
In April 2025, the government told MPs that the delays were due to Tanzania’s efforts to secure stronger protections for national interests in the contracts, seeking to avoid mistakes made in previous investment deals. At the time, officials said they expected the contracts to be signed within 2025 and gas production to begin by 2030.
Earlier this year, the government again assured the public that the deal would be concluded before June.
The ambitious US$42 billion project is a joint venture between the state-owned Tanzania Petroleum Development Corporation (TPDC) and a consortium of international energy companies, with Shell and Equinor as joint operators and ExxonMobil among the partners.
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Tanzania is estimated to hold around 57 trillion cubic feet of natural gas reserves, making the LNG project one of the country’s most significant planned energy developments.
Ndejembi said preparations are already underway. Compensation payments have reportedly been completed, and a school has been built in the Likon’go area in partnership with ExxonMobil, Equinor and Shell.
He added that the government has instructed TPDC to begin public awareness campaigns on economic opportunities linked to the LNG project.
The Petroleum Upstream Regulatory Authority has also been tasked with helping local companies build capacity so they can participate through local content requirements once the project begins.
Meanwhile, Parliament on Thursday approved the Ministry of Energy’s 2026/27 budget of 2.5 trillion Tanzanian shillings, up from 2.3 trillion shillings in the 2025/26 fiscal year.
