State hopes for LNG deal soon

The Star Early Edition - - BUSINESS REPORT -

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.

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