Tanzania’s $42bn LNG project reaches final legal stage
Tanzania’s $42-billion liquefied natural gas (LNG) project in Lindi has entered its final legal stage after the completion of key commercial negotiations with investors, according to Tanzania Petroleum Development Corporation (TPDC) Managing Director Mussa Makame
The long-delayed project has moved from negotiations on its commercial terms to the finalisation of the legal framework required before the development can proceed to the next stage.
The Citizen reports that Makame told journalists in Dodoma on September 21 that negotiations covering the project’s scale, taxation, commercial operations and revenue sharing had been completed during the 2025/26 financial year.
“The commercial negotiations have been concluded. What remains is the legal work, including the Host Government Agreements and the legislation,” Makame said.
Legal teams are currently meeting in Arusha to finalise the Host Government Agreements (HGAs) and supporting legislation. Once completed, the agreements will be submitted for government review, ratification and parliamentary approval.
Alongside the legal work, the Tanzanian government is preparing for the project’s potential economic impact and the participation of local businesses and workers.
According to Makame, the Prime Minister’s Office has established a dedicated team to prepare a Local Content Strategy and Plan for the LNG project.
The strategy is intended to increase Tanzanian participation in employment, skills development and business opportunities associated with the multibillion-dollar development.
This could create opportunities across areas including construction, transport, engineering, maintenance and other services required throughout the project’s development and eventual operations.
The LNG development comes as Tanzania works to expand domestic natural-gas production and distribution.
TPDC currently manages production from the Songo Songo and Mnazi Bay gas fields, which together produce about 170 million cubic feet of natural gas a day, according to Makame’s briefing.
About 85% of current production is used for electricity generation, highlighting the role of natural gas in Tanzania’s energy system.
Meanwhile, at Mnazi Bay, TPDC has completed two development wells that have added 65 million cubic feet per day of production capacity. Production is expected to increase from about 110 million cubic feet per day to at least 150 million cubic feet per day once supporting infrastructure upgrades are completed.
TPDC is also assessing the results of an exploration well drilled in a new area of the Mnazi Bay block before making an official announcement on the findings.
