Still Unsigned: Tanzania Says It Is Nearing Agreement on Long-Delayed Lindi LNG ProjectStill Unsigned: Tanzania Says It Is Nearing Agreement on Long-Delayed Lindi LNG Project
Key Highlights
- Tanzania says it is nearing agreement on its long-delayed LNG project at Lindi, valued at KSh 5.45T ($42B), though the host government agreements have not been signed.
- Host government agreements, government review, ratification and parliamentary approval must still be completed before construction begins, and no final investment decision has been reached.
- Equinor and Shell are joint operators, with ExxonMobil, Pavilion Energy, Medco Energi and state-owned TPDC as partners, and output is expected to last more than 35 years.
Tanzania says it is nearing agreement on its long-delayed liquefied natural gas (LNG) project at Lindi, a development valued at KSh 5.45T ($42B), although the host government agreements behind it have not been signed.
The statement matters because the project has stalled for years and would rank among the largest investments in East Africa. Finance Minister Khamis Mussa Omar made the remarks, according to a bne IntelliNews report of 13 October. Mwenendo could read only the headline and summary of that report, so the minister's full comments are not reproduced here.
What is still outstanding
According to a Further Africa report of 23 September, legal teams are still finalising the host government agreements in Arusha. Government review, ratification and parliamentary approval must be completed before construction begins, and a local content strategy and plan is being prepared, the report said, citing The Citizen.
No final investment decision has been reached and no date has been given. Mussa Makame, executive director of the Tanzania Petroleum Development Corporation (TPDC), said negotiations on scale, taxation and revenue sharing ended in the 2025/26 financial year.
Partners and scale
Equinor and Shell are joint operators, with ExxonMobil, Pavilion Energy, Medco Energi and TPDC as partners. The plant is planned at Likong'o in Lindi Region, and output is expected to last more than 35 years.
Reuters, as cited by Further Africa, reported that the project could access 47.13 trillion cubic feet of gas. TPDC puts current domestic output from the Songo Songo and Mnazi Bay blocks at about 170 million cubic feet a day.
Law and regional context
Further Africa noted that Reuters reported on Tanzania's new LNG law in September, which it said could help clear the way to a final investment decision. Which legislative steps remain is not fully clear from the sources available to Mwenendo.
Tanzania's energy plans sit alongside those of its neighbours. Mwenendo earlier reported that Uganda expects first commercial oil before the end of June 2027, with crude moving through a Tanzanian port. Mwenendo also reported how Aliko Dangote offered East African governments a combined 30% stake in a planned refinery at Lamu.
Until the host government agreements are signed and approved, the project remains an expectation rather than a commitment to build.
In Summary
- Who is involved?
- Equinor and Shell as joint operators, with ExxonMobil, Pavilion Energy, Medco Energi and TPDC as partners.
- What did Tanzania say?
- Finance Minister Khamis Mussa Omar said the country is nearing agreement on the LNG project.
- When was it reported?
- bne IntelliNews reported it on 13 October 2026; no final investment decision date has been given.
- Where is the project?
- At Likong'o in Lindi Region, southern Tanzania.
- Why does it matter?
- The KSh 5.45T ($42B) project has been delayed for years and would be a major East African investment.
- How far along is it?
- Host government agreements are still being finalised, and approvals and ratification must come before construction.