{"id":52151,"date":"2022-04-11T20:49:56","date_gmt":"2022-04-11T20:49:56","guid":{"rendered":"https:\/\/www.africa-press.net\/tanzania\/?p=52151"},"modified":"2022-04-11T20:49:56","modified_gmt":"2022-04-11T20:49:56","slug":"why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas","title":{"rendered":"Why Tanzanian Government is Striving to Join Exporters of Liquified Natural Gas?"},"content":{"rendered":"<p><strong>By Faridah N Kulumba<\/strong><\/p>\n<p><strong><a href=\"https:\/\/www.africa-press.net\/tanzania\/\">Africa-Press-Tanzania<\/a> <\/strong>The government of Tanzania is seeking to join the Liquefied Natural Gas (LNG) exporters, due to Russia\u2019s invasion of Ukraine spurred Europe to look for new energy sources. Tanzania\u2019s first LNG project investment is estimated to reach USD40 billion. Last year President Samia Suluhu Hassan ordered a speedup of the agreement.<\/p>\n<h2>The plan<\/h2>\n<p>Tanzania&#8217;s government is planning to conclude talks in June 2022, with a group of foreign oil and gas companies led by Norway\u2019s Equinor on developing a liquified natural gas terminal which will be the country\u2019s biggest project.<\/p>\n<h2>Benefits<\/h2>\n<p>According to the analysts, the sale of LNG on the international market would generate huge revenues for one of the largest East African nations. Tanzania has an estimated 17 trillion cubic meters of gas reserves, which puts it in the position to benefit from Europe\u2019s rush to diversify its energy sources.<\/p>\n<h2>Employments<\/h2>\n<p>The development of a liquified natural gas terminal project is expected to employ many Tanzanians, thus increasing the government\u2019s revenues through foreign income. Apart from that, the project is also aimed at increasing enough gas energy for Tanzania\u2019s needs, as the world is expected to use LNG in cars by 2030 in order to preserve the environment.<\/p>\n<h2>Prioritizing<\/h2>\n<p>The President of Tanzania Samia assured that embracing the private sector is her major priority. She added that it\u2019s only the private sector that can bring foreign direct investment and create jobs. President Samia expressed her commitment to fast-track the development of natural gas resources for the benefit of the nation. One month after Samia was sworn in as the President after the death of President John Pombe Magufuli She told members of parliament that the talks over the liquefied natural gas plant had dragged on too long and pledged to finish them speedily so the project can be implemented.<\/p>\n<h2>Why is it a priority during Samia\u2019s regime, not Magufuli\u2019s?<\/h2>\n<p>Investors\u2019 sentiment over Tanzania soured after the administration of former President Magufuli overhauled mining legislation and ordered contracts to be renegotiated. Tanzania had hoped to resume talks aimed at kick-starting the project following the re-election of President Magufuli in October 2020, who had called for a review of Production Sharing Agreements clauses related to the repatriation of funds, arbitration issues, revenue sharing, and parliamentary power. But unfortunately, Magufuli died of a heart condition in March 2021.<\/p>\n<h2>Negotiations<\/h2>\n<p>On 29 April 2021, President Samia called for a resumption of negotiations with giant companies London-Shell and Norway\u2019s Equinor that had stalled during President John Pombe Magufuli\u2019s administration for more than a year. Tanzania formed a negotiation team that was tasked to negotiate with the investors. Other international companies include Royal Dutch, Exxon Mobil Corp, Ophir Energy Ltd, and Pavilion Energy Pte.<\/p>\n<h2>Obstacles<\/h2>\n<p>In 2017, the negotiations between the Tanzania government and International Oil and Gas Companies (IOGC) on Liquefied natural gas stopped because they failed to agree on modalities together and later they agreed to undertake it separately. In 2018 they resumed the negotiations but encountered a hitch after the Production Sharing Agreements were taken to the Attorney General for review, stalling negotiations. Tanzania was seeking to scrap sections on the contract that seem tilted against it.<\/p>\n<p>The negotiations were expected to have concluded by 2019 but Marie Msellemu Tanzania&#8217;s Petroleum Development Corporation communications manager explained that they were finalizing compensation for the land in Lindi for the liquefied natural gas site.<\/p>\n<h2>Opportunities<\/h2>\n<p>The collaboration between Tanzania\u2019s government and the foreign investors on the LNG project will not only bring the best outcome for Tanzania and for the project but will also make the project competitive in the global marketplace, produce and process a vast amount of natural gas power Tanzania\u2019s industrialization plan, support the country\u2019s ambitions to supply gas to the region and reduce dependence on imported oil.<\/p>\n<h2>Similar deals<\/h2>\n<p>On 4th May 2021, President of Kenya Uhuru Kenyatta together with the Tanzania President Samia announced as they had agreed on a raft of deals, and among the biggest ones is a long-awaited plan to build a 600km cross-border gas pipeline that will run between the coastal cities of Mombasa and Dar es Salaam. The announcement was made, during President Samia&#8217;s first visit to Kenya, since she became president in March 2021.<\/p>\n<p>The gas pipeline plans have been in the works since at least 2010, but it was put on the back burner after the relations between the two nations grew strained over a multitude of issues in the last decade, and unfortunately, it worsened during the five years of Magufuli&#8217;s presidency.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Faridah N Kulumba Africa-Press-Tanzania The government of Tanzania is seeking to join the Liquefied Natural Gas (LNG) exporters, due to Russia\u2019s invasion of Ukraine spurred Europe to look for new energy sources. Tanzania\u2019s first LNG project investment is estimated to reach USD40 billion. Last year President Samia Suluhu Hassan ordered a speedup of the [&hellip;]<\/p>\n","protected":false},"author":84,"featured_media":52152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,6,7],"tags":[6991,22,75,8322,8460],"class_list":["post-52151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-files","category-head-lines","tag-africa-press-tanzania","tag-liquefied-natural-gas","tag-magufuli","tag-president-samia","tag-russias-invasion-toukraine"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why Tanzanian Government is Striving to Join Exporters of Liquified Natural Gas? - Tanzania<\/title>\n<meta name=\"description\" content=\"The government of Tanzania is seeking to join the Liquefied Natural Gas (LNG) exporters, due to Russia\u2019s invasion of Ukraine\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Tanzanian Government is Striving to Join Exporters of Liquified Natural Gas?\" \/>\n<meta property=\"og:description\" content=\"The government of Tanzania is seeking to join the Liquefied Natural Gas (LNG) exporters, due to Russia\u2019s invasion of Ukraine\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas\" \/>\n<meta property=\"og:site_name\" content=\"Tanzania\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-04-11T20:49:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2022\/04\/climate-adaptation-platform-LNG.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"860\" \/>\n\t<meta property=\"og:image:height\" content=\"575\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Why Tanzanian Government is Striving to Join Exporters of Liquified Natural Gas?\",\"datePublished\":\"2022-04-11T20:49:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas\"},\"wordCount\":775,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/tanzania\/sites\/17\/2022\/04\/climate-adaptation-platform-LNG.jpg\",\"keywords\":[\"Africa Press-Tanzania\",\"Liquefied natural gas\",\"Magufuli\",\"President Samia\",\"Russia\u2019s invasion toUkraine\"],\"articleSection\":[\"all news\",\"Economy\",\"files\",\"head lines\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas\",\"url\":\"https:\/\/www.africa-press.net\/tanzania\/all-news\/why-tanzanian-government-is-striving-to-join-exporters-of-liquified-natural-gas\",\"name\":\"Why Tanzanian Government is Striving to Join Exporters of Liquified Natural Gas? 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