Tanzania has agreed to construct a substantial Liquefied Natural Gas (LNG) export terminal with supermajors as part of its efforts to hasten the development of its natural gas resources, according to The Citizen, a Tanzanian news publication
Tanzania’s Energy Minister, January Makamba, recently told Bloomberg that China National Offshore Oil (CNOOC )and Tanzania have “an agreement in the works” to carry out geological research ahead of an offshore licensing cycle anticipated for 2024.
“We believe that Tanzania has more gas, and possibly oil, to be discovered because only 30% of the area with potential for oil and gas resources has been explored so far,” Mr. Makamba told Bloomberg.
The Chinese corporation and the Tanzania Petroleum Development Corporation (TPDC) would work together on projects in TPDC’s deep-water regions, the minister said. The blocks are close to the significant natural gas discoveries made by a joint venture of Shell, Equinor, and ExxonMobil.
An agreement to construct an LNG export facility was signed last month between the three supermajors and the Tanzanian government. The foundation of the first arrangement is an agreement with the host government and a production-sharing agreement.
Tanzania and other African countries are making an effort to capitalize on the rising LNG demand in Europe, which is buying more and more of the ultra-chilled fuel to replace Russian pipeline supplies.
Oil and gas corporations are currently attempting to sign more deals in the Mediterranean and Africa in order to supply gas to Europe, which plans to stop using Russian gas by 2027.
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Claudio Descalzi, CEO of Eni, said that Europe should use Africa as a “south-north” energy axis for gas distribution in an interview with the Financial Times at the beginning of the year.