State hopes for LNG deal soon
TANZANIA hoped to reach an agreement with oil companies next year to pave the way for the construction of a liquefied natural gas (LNG) plant, part of a bigger plan for a new export terminal, a senior official said on Tuesday. The planned new infrastructure will enable Tanzania to export some of the huge offshore gas reserves discovered in recent years. BG Group, together with Statoil, Exxon Mobil and Ophir Energy, plan to build a $30 billion (R399bn) onshore LNG export terminal in partnership with the state-run Tanzania Petroleum Development Corporation. However, a final investment decision has been held up by government delays in acquiring land at the site and establishing a legal framework for the hydrocarbon industry. First, the government and oil majors must set out terms on which the project will be built and run.