Oil & Gas

Tanzania’s progress towards implementing its long-awaited Liquefied Natural Gas (LNG) project reflects the strategic leadership and investment-driven vision of President Dr Samia Suluhu Hassan. The proposed US$42 billion (approximately 110tri/-) investment in Lindi is one of the country’s biggest economic opportunities, with the potential to attract international capital, strengthen energy security, create employment and accelerate industrialisation. The conclusion of negotiations on commercial terms, taxation and revenue sharing marks a significant breakthrough in moving the project closer to implementation.

The involvement of major international energy companies, including Equinor, Shell, ExxonMobil, Medco Energy and Pavilion Energy, demonstrates the growing confidence in Tanzania’s natural gas potential. Through her administration’s continued engagement with investors and commitment to safeguarding national interests, President Samia has helped advance a project that has remained under discussion for years. The LNG development also aligns with Dira 2050, which recognises oil and gas as key drivers of economic transformation.

Beyond LNG, Tanzania is strengthening its position in the regional energy sector through strategic partnerships and infrastructure development. Cooperation with Uganda on the proposed integrated refining and energy hub in Tanga, alongside progress on the East African Crude Oil Pipeline, highlights the country's commitment to regional energy integration. Additionally, empowering the Tanzania Petroleum Development Corporation (TPDC) to undertake independent petroleum exploration through four exploration licences strengthens national participation and builds domestic capacity in the petroleum industry.

These developments are creating significant economic opportunities, with approximately 10,000 jobs generated across the projects, including 7,500 for Tanzanians, while more than 200 local companies have secured supply contracts worth over 1.325tri/-. However, the long-term success of these investments will depend on transparent revenue management, environmental protection, skills transfer and meaningful local participation. Under President Samia’s leadership, Tanzania has an opportunity to transform its natural gas wealth into industrial growth, quality employment and shared prosperity, advancing the ambitions of Dira 2050.