Tanzania is poised to become a major player in the global liquefied natural gas (LNG) market in the coming years. As of October 2023, the country has an estimated 57.5 trillion cubic feet of natural gas reserves, the 10th largest in the world majority of which is offshore, in the deep waters of the Indian Ocean.
The Tanzanian government has ambitious plans to develop its LNG sector. In July 2023, it signed a Host Government Agreement (HGA) with Shell and Equinor for the development of a multi-billion-dollar LNG project which is set to be the largest energy project in Southern and Eastern Africa. The project is expected to produce 15 million metric tons of LNG per year, with a large proportion targeting the export market and a percentage set aside to fulfil local demand.
