Hormuz Crisis Boosts Appeal of $42-Billion Tanzania LNG

Equinor sees a multi-billion LNG export project in Tanzania becoming more attractive for development amid the Middle East conflict that has crippled liquefied natural gas supply through the Strait of Hormuz, a senior executive at the Norwegian energy major said on Tuesday. However, Equinor and its co-operator of the project, Shell, have been locked in difficult negotiations with the government and authorities in Tanzania for years and the provisional Tanzania LNG project has not advanced much this decade.

“You don't want to wait too long to put new LNG volumes on the market, so maybe now is a good time to get on with it,” Philippe Mathieu, Executive Vice President, Exploration & Production International, at Equinor, said at an energy conference in the Norwegian city of Stavanger, as carried by Reuters. The Hormuz crisis and the now-dead assumption that Qatar and other Gulf producers are the most reliable suppliers of oil and gas make the project in Tanzania, estimated to cost $42 billion, more attractive, the executive said. “It means you are producing LNG in an area which is not exposed to these kinds of geopolitical challenges,” Mathieu added.

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