Tanzania Nears $42 Billion LNG Project, Positioning It Among Africa’s Top Gas Holders
The joint venture between Equinor and Shell is poised to bring a massive LNG project to Tanzania, potentially elevating the country to the sixth‑largest gas reserve holder on the continent. The development could generate significant revenue, create jobs, and strengthen regional energy security.
Tanzania Nears $42 Billion LNG Project, Positioning It Among Africa’s Top Gas Holders
Tanzania, 15 Oct 2026 – Equinor and Shell are on the brink of finalizing a $42 billion liquefied natural gas (LNG) project that could unlock 47.13 trillion cubic feet of natural gas reserves, according to a report by Reuters. The development would place Tanzania among Africa’s top six holders of gas reserves, a move that could reshape the continent’s energy landscape.
Highlights
- Equinor and Shell close to $42 billion LNG deal in Tanzania
- 47.13 trillion cubic feet of reserves could boost national gas output
- Project expected to create 5,000 jobs and generate $1.2 billion annual revenue
- Enhances Tanzania’s role in regional energy security and AFCFTA
- Potential catalyst for further investment from African Development Bank
Project Overview
The LNG project, located near the Tanzanian coast, will involve the construction of a 1.5 million tonnes per annum (mtpa) plant. The joint venture will source gas from the newly discovered offshore fields in the Indian Ocean, with production expected to begin in 2029. The project’s financing structure includes a mix of equity from Equinor and Shell and debt from international development banks.
Economic Impact
Analysts estimate that the project will generate approximately $1.2 billion in annual revenue for the Tanzanian government through taxes and royalties. In addition, the construction phase is projected to create around 5,000 direct jobs, with indirect employment expected to rise by 15 % in related sectors such as logistics and services.
Regional Implications
The LNG facility will enable Tanzania to export gas to neighboring markets, strengthening energy security across East Africa. By joining the African Continental Free Trade Area (AFCFTA) framework, the country can leverage preferential trade terms for LNG exports, potentially increasing its competitiveness in the [](https://www.brimco.io/news/macron-pope-leo-xiv-ai-nuclear-weapons-oversight/)global market.
Strategic Significance
The project aligns with Tanzania’s national development strategy, which prioritizes energy infrastructure to support industrialization. Moreover, the involvement of major international players like Equinor and Shell signals confidence in the region’s resource base and could attract further investment from the African Development Bank.
Conclusion
With the LNG project nearing completion, Tanzania stands to become a pivotal player in Africa’s gas sector. The $42 billion investment, backed by global energy giants, promises substantial economic benefits and enhances the country’s strategic position within the continent’s evolving energy framework.
Written by
Tumisang Bogwasi
Tumisang Bogwasi, Founder & CEO of Brimco. 2X Award-Winning Entrepreneur. It all started with a popsicle stand.
