Tanzania is expected to finalize a long awaited agreement with international energy partners in the coming days, setting the stage for a $42 billion liquefied natural gas (LNG) project in the country’s southern region.
The agreement, known as the Host Government Agreement (HGA), will establish the legal and fiscal terms required for the project to move forward to a final investment decision (FID).
A Tanzanian daily Newspaper reported that that most of the outstanding issues between the government and international energy companies have been resolved, raising hopes that the HGA could be signed before the end of the month.
“We are optimistic that if not this week, then by the end of the month, the agreement will be finalized,” a source informed the publication.
On his part, Tanzania’s Deputy Prime Minister and Minister of Energy, Doto Biteko, also confirmed that negotiations have reached an advanced stage but did not provide a specific date for the agreement’s completion.
He explained that the process had taken time due to the need to harmonize key legal and commercial provisions between the government and the project developers.
“This progress is thanks to President Samia Suluhu Hassan’s strong interest in finalizing the agreement,” Biteko said.
Earlier this year, the Attorney General’s Office reviewed a draft of the agreement and returned it with recommendations.
Additional consultations have since been held to address those concerns.
The document will be submitted to the appropriate authorities for approval once both parties reach a consensus.
The LNG project, located in the Likong’o area of Lindi Region, involves some of the world’s largest energy companies.
It is expected to position Tanzania as a major player in the global gas market, taking advantage of its estimated 57 trillion cubic feet of natural gas reserves mainly offshore around Songo Songo Island and Mnazi Bay.
Project to boost economy, energy security
President Hassan has described the gas development as a “strategic and special” opportunity for the country.
Her administration has made the project a top priority.
It’s part of a broader plan to attract foreign investment, boost energy security, and create economic opportunities—especially for residents of the Lindi and Mtwara regions.
She has also said that Tanzania is open to international cooperation on gas development and has called for updates to existing laws to make the sector more attractive to private investors.
The HGA, once signed, will enable the project to proceed to its preparatory engineering stages known as pre FEED (Front End Engineering Design) and FEED before reaching FID in 2025.
If successful, production could begin shortly after.
Tanzania’s LNG plans have been delayed for years due to regulatory complexities and protracted negotiations.
However, the latest progress signals renewed momentum for one of East Africa’s most ambitious energy infrastructure projects.
