Tanzania has renewed efforts to conclude negotiations on one of Africa’s most ambitious energy developments, as it seeks to finalise a proposed liquefied natural gas (LNG) project valued at approximately $42 billion by mid-2026. The move signals a renewed determination by the government to position the country as a major energy hub in East Africa.
The LNG project, which would unlock some of Africa’s largest undeveloped offshore gas reserves, has been stalled for more than a decade due to regulatory uncertainty, shifting policy priorities, and complex negotiations with international partners. If completed, it would represent a defining moment for Tanzania’s energy sector and could have far-reaching implications for its broader economic trajectory.
Speaking at India Energy Week in Goa, Tanzania’s Deputy Minister for Energy, Salome Makamba, said the government expects negotiations to conclude before June 2026. Due to the scale and technical complexity of the project, gas production is not expected to begin until roughly eight years after final agreements are signed.
The venture is structured as a joint development between the state-owned Tanzania Petroleum Development Corporation and a consortium of international energy companies. The planned LNG facility would monetise more than 47 trillion cubic feet of offshore gas, drawn from national reserves estimated at over 54 trillion cubic feet.
Beyond export revenues, analysts say the project represents a strategic effort to anchor long-term economic growth. LNG exports could strengthen foreign exchange earnings while supporting domestic power generation, fertiliser production, and petrochemical industries. Government officials have also highlighted natural gas as a transition fuel capable of driving industrialisation while supporting investment in renewable energy.
However, investor confidence remains cautious. Despite early offshore discoveries attracting global interest, commercial development has lagged. Structural challenges such as policy inconsistency, overlapping regulatory mandates, infrastructure gaps, and governance concerns have contributed to repeated delays. Industry assessments continue to point to uneven regulatory implementation and bureaucratic bottlenecks, particularly around local content requirements and project approvals.
Energy analysts argue that finalising the LNG agreement alone will not be sufficient. Sustained investor confidence, they say, will depend on deeper institutional reforms, clearer regulatory oversight, and improved transparency throughout the project lifecycle.As negotiations enter what officials describe as a decisive phase, the outcome will serve as a critical test of Tanzania’s ability to convert its vast gas resources into long-term economic value. Success could firmly establish the country as a major player in Africa’s gas sector, while failure may reinforce concerns over its capacity to deliver large-scale infrastructure projects.