M a r k e t N e w s
Tanzania: TPDC, Oil & Gas Investors to Meet Ahead of New Planned LNG Plant
Posted on : Wednesday , 15th June 2016
The Tanzania Petroleum Development Corporation (TPDC) is on Wednesday set to meet oil and gas investors ahead of the government's decision on Hosting Government Agreement (HGA) that could create a new outlook for the planned liquefied natural gas (LNG) plant.
Construction of the 10-milliontonne a year LNG plant in East Africa's biggest holder of natural gas reserves after Mozambique is yet to be decided and government officials say a decision on HGA is vital for the investment.
TPDC Director General James Mataragio told the 'Daily News' that the meeting, scheduled for Wednesday, is meant to start negotiation and basic understanding of hosting government agreement for the planned LNG plant.
The meeting will be attended by Royal Dutch Shells, which acquired BG Group, Statoil, Exxon Mobil, and Ophir Energy, both planning to build the onshore LNG export terminal in a joint venture with TPDC.
"The HGA is expected to define commercial and technical parts of the investment," said Mataragio. Construction of the 15-billion-US dollar export plant is estimated to be complete by 2020 and business experts say the two Africa's resource-rich eastern coast countries - Tanzania and Mozambique -- had turned potential targets to fuel Asia's industrial boom.
Over 2,000 hectares of land have been allocated at Likong'o Village in Lindi for the construction of the planned LNG export terminal. The government has, however, set aside an additional 17,000 hectares near the proposed area for the two-train LNG terminal, particularly for industrial playgrounds.
Despite global concern over the prolonged fall in gas price, Tanzania maintains that it has not been affected with the new development. All natural gas production is designated for domestic consumption.
Nevertheless, TPDC has said that the dynamics in the global oil and gas prices "are not a threat but an alert" for the government to reposition itself ahead of the huge investment. Media reports said the slump in the gas prices is likely to hold promise of gas-fired prosperity in the developing resource rich countries.
After a continued drop, gas prices rebounded somewhat recently along with other commodities -- and TPDC Director General articulates that Tanzania still has a promising future.
Source : allafrica.com
