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The United Republic of Tanzania

Petroleum Upstream Regulatory Authority

Petroleum Upstream Regulatory Authority


LNG negotiations to resume soon

By Janeth Mesomapya

Minister of Energy Hon. January Makamba has said negotiations on the implementation of the Liquefied Natural Gas Project (LNG) will officially begin in the next three or four weeks between the Government and investors.

He made the remarks when officiating a one-day workshop on the opportunities available in the implementation of the East African Crude Oil Pipeline Project from Hoima, Uganda to Tanga, Tanzania (EACOP). The workshop took place today, Thursday, September 23, 2021 at the Julius Nyerere International Convention Center (JNICC) in Dar es Salaam.

Commenting on the remarks by Minister Makamba, Acting Director General of the Petroleum Upstream Regulatory Authority (PURA) Eng. Charles Sangweni said the Government's decision to speed up these discussions is particularly important at this time.

He noted that global energy consumption trend is headed towards use of renewable energy and so as a nation we must be prepared to drive up with the world's momentum.

"It is critical that this project is implemented so that when it is completed we can tap into the international market," he added.

Negotiations for the project had started since 2016, but the Government suspended the exercise to finalize the review of PSA contracts and then resumed negotiations in 2021.

The LNG project is estimated at almost USD 30 billion investment and is expected to create 6,000 direct jobs and 15,000 indirect jobs for Tanzanians.