The framework agreement represents an early milestone in progressing LNG projects in Tanzania
Shell and Equinor back Tanzania’s LNG ambitions
Pre-agreement signals hope for the country’s stalled liquefaction plans
Shell and Norway’s Equinor have signed a framework agreement with the Tanzanian government for an LNG export project. But other stakeholders have yet to sign, and some significant hurdles remain. The signing of the letter of understanding was “an early milestone towards progressing the LNG opportunity in Tanzania”, Equinor and Shell tell Petroleum Economist. The letter establishes some of the “foundational elements and principles” for the host government agreement (HGA), Equinor confirms. The HGA is an essential part of progressing the Tanzanian LNG project, as will establish the fiscal, legal and commercial terms for the onshore parts of the development, just as the production-sharing agree
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