Norway's Equinor to start talks with Tanzania over LNG project
OSLO (Reuters) - Norway’s Equinor is ready to start talks with Tanzania on developing a liquefied natural gas (LNG) project based on a deepwater offshore discovery, the company said.
Tanzanian President John Magufuli has asked his government to proceed with negotiations to set out the commercial and fiscal framework for the LNG project, Equinor, a majority state-owned energy company formerly known as Statoil, said.
“Equinor will now proceed with our partner ExxonMobil with negotiations for a host government agreement,” an Equinor spokesman said in an email to Reuters.
He said it was too early to say how long talks with the government could take and how much the project would cost.
Tanzania said in 2014 that a planned LNG export plant could cost up to $30 billion.
Royal Dutch Shell, which operates deepwater Blocks 1 and 4, adjacent to Equinor’s Block 2, previously sought to develop the LNG project in partnership with Equinor and Exxon Mobil.
“Shell continues to work with the government of Tanzania to establish the most cost effective and competitive solution for the LNG project in Tanzania,” a company spokeswoman said in an email to Reuters.
“We believe the government is best placed to lead the right way forward to deliver the project,” she added.
Shell declined to say whether it would join Equinor and Exxon Mobil or would pursue separate talks with the government.
Shell said on its website the three blocks had sufficient gas reserves to build an onshore LNG plant, but the company was not immediately available to comment on whether it would join the other two in starting talks.
Shell estimates its two blocks hold about 16 trillion cubic feet (453 billion cubic meters) of recoverable gas, similar to the volumes in Equinor’s Block 2.
Reuters reported in June that Exxon Mobil was seeking to sell its 25 percent stake in Block 2 as it was focusing on an even bigger project in neighboring Mozambique.
Editing by Gwladys Fouche, Edmund Blair and Adrian Croft
As discussed in the HPI Market Data 2019 report, published in November by Gas Processing & LNG’s sister publication, Hydrocarbon Processing, rising propane and ethane supplies in the US have been enabled by greater production of shale gas.
Industry Trends: Norway targets global LNG market
Norway aims to become a leading player in the global LNG market during the next several years through the establishment of new, large-scale LNG terminals.
Regional Focus: Challenges of scaling up Africa’s LNG production
Several gas projects are underway in Africa, but they continue to be constrained by inadequate infrastructure, slow finance mobilization, lack of security and uncertainty over hydrocarbon regulations that are casting doubt on the outcome of the continent’s drive to meet its anticipated 128% gas demand increase by 2040.
GasPro 2.0: A Webcast Symposium
The global LNG industry is becoming increasingly interconnected as grassroots export projects get off the ground. Another technology route for processing gas into fuels—GTL—is attracting renewed attention due to improving economics. Small-scale solutions for both LNG and GTL are at the forefront of new technological developments, while major projects using more conventional technologies continue to start up around the world.
During this webcast, we will focus on LNG, GTL, gas processing technology developments and deployments, operations, small-scale solutions, transportation, trading, distribution, safety, regulatory affairs, business analysis and more.
October 25, 2018 08:30 AM CDT