Oil & Gas

Tanzania is edging closer to a historic breakthrough in its energy sector, one that could reshape the nation’s economy and elevate its long-neglected southern regions. The $42 billion Liquefied Natural Gas (LNG) project in Likong’o, Lindi, now in final negotiations, is expected to be sealed by 2025, paving the way for annual production of 10 million tonnes. In partnership with Shell and Equinor, this mega-investment is among the largest on the African continent, signaling a turning point in the country’s economic journey.

The transformative power of LNG lies not just in numbers, but in geography and equity. For decades, Tanzania’s economic growth has been concentrated in Dar es Salaam and the northern corridor, leaving Lindi and Mtwara underdeveloped despite their resource wealth. By unlocking the South’s economy, LNG promises jobs, business growth, and significant government revenues that can fund national development. For communities long on the margins, this project carries the weight of long-awaited transformation.

LNG’s impact will expand even further when paired with infrastructure projects. Together with the Standard Gauge Railway (SGR), which will connect southern regions to domestic and international markets, LNG forms the backbone of a new development corridor. Energy without infrastructure risks isolation, while infrastructure without energy risks underutilisation; combined, they position Southern Tanzania as a new economic powerhouse within East Africa. This integrated growth could redefine the nation’s economic geography.

Nationally, LNG is expected to transform industries, households, and Tanzania’s global standing. By offering clean energy alternatives, it could reduce reliance on charcoal and firewood, cut industrial costs, and attract foreign investment. Beyond GDP growth, this is structural change that will impact homes, farms, and factories, while also anchoring Tanzania’s ambition of becoming a trillion-dollar economy by 2050. If implemented transparently and inclusively, LNG could become the catalyst that carries Tanzania into its next economic chapter.