Tanzania said it is close to finalizing its roughly $42 billion LNG export project led by Equinor and Shell, though definitive agreements remain unsigned.
Published in Brief No. 3 ·
Reviewed by Georges C. Nama, Esq., licensed by the Supreme Court of Texas.
On 13 October 2026, Tanzania’s finance minister said the country’s roughly $42 billion LNG project is “almost there,” with commercial, fiscal and revenue-sharing terms reportedly largely settled, but the definitive Host Government Agreement is not yet signed. Tanzania signed only a preliminary framework in 2022 and missed a mid-2026 target, leaving legal finalization and enabling legislation possibly to be completed by the end of 2026. The onshore project at Lindi — with partners Equinor, Shell, ExxonMobil and others alongside state company TPDC — would commercialize an estimated 47.13 trillion cubic feet of offshore gas, with first production cited around 2034. The project is pending and not a signed deal, and timelines conflict across sources.
ExxonMobil is a project partner, and a concluded Host Government Agreement would unlock one of East Africa’s largest undeveloped LNG schemes — a multi-decade opportunity for U.S. EPC firms, equipment suppliers, lenders and LNG offtakers. The years-long legislative and fiscal bottleneck is also a cautionary data point for investors weighing East African gas timelines.
What it means for U.S. companies
ExxonMobil is a partner in this ~$42 billion scheme, so a concluded Host Government Agreement would unlock one of East Africa’s largest undeveloped LNG projects — a multi-decade opportunity for U.S. EPC firms, equipment suppliers, lenders and offtakers. Commercial, fiscal and revenue-sharing terms are reportedly largely settled, but the definitive agreement is not yet signed and the project has already missed a mid-2026 target, with first production cited only around 2034. U.S. parties should treat this as nearing, not concluded, and watch for the signed HGA and enabling legislation. The long legislative bottleneck is itself a useful caution for anyone modelling East African gas timelines.
Related reading
Our oil, gas and energy practice page explains how we draft and review joint operating agreements, farmouts, drilling and gas sales contracts, and host government agreements for U.S. companies and investors. Our Africa–U.S. transactions page covers deal structuring, due diligence and cross-border compliance, including the U.S. Foreign Corrupt Practices Act. Before you sign, read 5 Mistakes That Sink Africa–U.S. Deals (and How to Avoid Them), and find every item of this week’s report in the Energy Intelligence Brief.
Sources: Reuters (via CNBC Africa) ↗ · bne IntelliNews ↗
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