The photo is sourced from the American Energy News
The parties executed the tentative agreement in June 2022. The Ministry of Energy of Tanzania believes that the Final Investment Decision on the project will be made in 2025. In addition to Shell, Equinor and ExxonMobil, British Ophir Energy and Pavilion Energy from Singapore will participate in the producing capacities construction. The natural gas liquification platform will be located in Lindy Region in the South-East of the country.
In case of successful implementation of the project, Tanzania will become the seventh LNG exporter among all African countries. According to Global Energy Monitor, by July 2022 there were 31 LPG trains with the total throughput of 75.8 mtpa. Algeria was the regional leader in this industry with 15 operating trains of 29.3 mtpa; other producing capacities were located in Nigeria (7 trains for 23 mtpa), Egypt (3 trains for 12.2 mtpa), Cameroon (4 trains for 2.4 mtpa), Angola (1 train for 5.2 mtpa) and Equatorial Guinea (1 train for 3.7 mtpa).
The construction of production capacities also will allow for partial “cool down” of the price race between Asia and Europe having emerged against the background of some retardation in bringing the new capacities on stream. If in 2018 13 LNG trains with for the total of 45.6 mtpa were commissioned globally, in 2019 there were 10 trains for 16.7 mtpa commissioned, in 2020 – 7 trains for 5.8 mtpa, and in 2021 – 5 trains for 11.9 mtpa. At the same time, the global demand will continue growing, including due to the increase in the natural gas volumes used in electricity generation: by July 2022 there were 281 gas-fired power plants under construction globally with the total capacity of 168.7 gigawatts (GW), which exceeds the total capacity of operating gas-fired CHPPs in the European non-EU countries (254 power plants with 146.8 GW total capacity).
