Tanzania Expects to Finalise $42 Billion LNG Deal in Coming Months, Finance Minister Tells Reuters
Tanzania's Finance Minister Khamis Mussa Omar told Reuters the government expects to finalise agreements on major investment projects in the coming months, including a $42 billion LNG development that officials hope will underpin industrialisation. The project is led by Equinor and Shell. The deal is part of a broader effort to establish East Africa as a major energy hub, alongside Uganda's planned first oil exports via the Tanzanian port of Tanga in early 2027. The government is also assessing whether to seek a new IMF lending programme, with a decision expected by June.
Why this matters
A $42 billion LNG project would be one of the largest energy investments ever in sub-Saharan Africa, and finalisation would mark a significant step in East Africa's emergence as an LNG export region. The parallel Uganda export pipeline via Tanga signals coordinated regional energy infrastructure ambition. Tanzania's consideration of a new IMF programme adds a sovereign financing dimension that could shape the project's fiscal terms and government take. For international energy majors, the deal structure will set precedents on host-government agreements and revenue-sharing across the region.
On the Ground
Finalisation of a project of this scale activates intensive cross-border legal work: host government agreements, production sharing contracts, LNG offtake agreements, and project finance documentation involving export credit agencies and development finance institutions. International arbitration clauses and stabilisation provisions in the investment agreements will be heavily negotiated. A trainee in an international projects or energy team would assist with due diligence on the regulatory and licensing framework, draft summaries of comparable East African LNG precedents, and support execution logistics across multiple jurisdictions.
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