Tanzania is set to sign a Host Government Agreement (HGA) with energy majors Shell, Equinor and ExxonMobil for the country’s $42 billion liquefied natural gas (LNG) development in July, according to Felchesmi Jossen Mramb, Permanent Secretary in Tanzania’s Ministry of Energy.
The HGA will outline the rights and obligations of the government and national oil company as well as the conditions under which the onshore project will be developed and operated.
In addition to signing the HGA, the Tanzanian government is expected to ink an updated production sharing agreement for the project with the energy firms as well as enact a new law to fast track the implementation of the offshore LNG project.
The expected signing follows the completion of negotiations in May this year between the country and international developers, with the HGA contracts currently being drafted.
These milestones fall under efforts by the east African country to start exporting LNG within five years following the start of construction of the project, stated Mramb.
He added that the signing of the HGA and the adoption of a new law “should pave the way for the final investment decision,” initially earmarked for 2025.