SHEL - Equinor partners agree to develop multibillion-dollar LNG project in Tanzania
2023-05-19 11:37:37 ET
Equinor ( NYSE: EQNR ) said Friday its partnership with Shell ( SHEL ) and Exxon Mobil ( XOM ) has reached agreement with the government of Tanzania to develop a liquefied natural gas export terminal expected to cost tens of billions of dollars.
The agreement, which is considered a milestone for the long-delayed project, includes key elements of a host government agreement and a production sharing agreement; it is subject to legal reviews and quality assurance before an expected signing in the coming weeks.
A senior Tanzania government official estimated this week the project would cost ~$42B .
The project aims to feed gas from three deepwater blocks offshore Tanzania to a 15M metric tons/year plant to be built at Lindi on the coast.
A final investment decision for the Tanzania LNG project is still believed to be some years away.
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Equinor, partners agree to develop multibillion-dollar LNG project in Tanzania