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Petroleum Upstream Regulatory Authority

Petroleum Upstream Regulatory Authority

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Government signs Preliminary Agreement of the Host Government Agreement (HGA) for LNG project



By Janeth Mesomapya

President Samia Suluhu Hassan on May 11, 2022 witnessed the signing of the Preliminary Agreement of the Host Government Agreement (HGA) of the Liquefied Natural Gas (LNG) project.

The agreement was signed between the Government and Shell and Equinor companies, who are the main partners in the implementation of the project.

During the event that took place at the State House in Chamwino, Dodoma, President Samia said the project is massive, strategic and special as it brings capital and revenue to the country.

"My instructions are to continue to safeguard the interests of the country in the next stages of negotiations and it is also important to note that it is give-or-take, so both sides should embrace fluidity in order to achieve the intended goal," he said.

President Samia also stressed that the project is nationwide but should first benefit the residents of Lindi and Mtwara regions as well as building the capacity for Tanzanians to participate fully in the project.

“The process of discussion, preparation and implementation of the project must lead to building the capacity of Tanzanians in this sector, our mission is that in the years to come, future generations can harvest the country's resources more productively and more independently," she added.

For his part, the Minister of Energy January Makamba said the project will change the image of the country's economy and that its implementation will be carried out in parallel with the development of infrastructure on the petroleum upstream sector to facilitate the harvesting of the resource.

"Some of the benefits of this project are to stimulate economic growth, increase government revenues, increase employment and enhance the capacity of Tanzanians professionally," he noted.

Minister Makamba added that between four and six years of construction of the project there are expected to be 10,000 jobs and after completion of construction, there will be 500 permanent jobs.

"The Ministry is committed to ensuring Tanzanians participate more effectively and we are committed to building human resources capacity to serve the project, participate and benefit from the project," he added.

The LNG project is worth $30 billion (TZS 70 trillion) and will be implemented in Likong'o area in Lindi region.