Vice President for Shell Tanzania and Country Chair, Jared Kuehl has indicated that the negotiation between energy companies and the government of Kenya have successfully concluded.
Pending the completion of the assurance process in the following weeks, the signing of the Host Government Agreement (HGA) covering the onshore aspects of the project and a production sharing agreement (PSA) overseeing its upstream components is anticipated.
While the Tanzanian government has yet to issue an official statement on the matter, Kuehl emphasized that this milestone marks significant progress towards the realization of the Tanzania Liquefied Natural Gas (LNG) project.
The next steps involve an extensive period of detailed engineering design work, with Equinor and Shell, joint operators, expressing satisfaction with the recent developments and their commitment to continued collaboration with their partners, including ExxonMobil, MedcoEnergi, Pavilion Energy, TPDC, and the Government of Tanzania.
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The initial Host Government Agreement (HGA) between the government of Tanzania and a consortium consisting of Shell, Exxon Mobil, Equinor, and Ophir Energy was signed in June 2022.
This agreement served as a foundation for further comprehensive negotiations aimed at implementing the $30 billion liquefied natural gas (LNG) project. The recent breakthrough in talks between the international energy companies and the Tanzanian government marks a significant milestone in the project’s progress.
Once the assurance process is successfully completed, the signing of the HGA and PSA will pave the way for the realization of the onshore and upstream components of the Tanzania LNG project. The partners involved are eagerly looking forward to advancing the next phase, which entails detailed engineering design work.
