Equinor Accelerates 42 Billion Dollar Tanzania LNG Project

Equinor is accelerating the development of a long-stalled liquefied natural gas export plant in Tanzania, citing increased attractiveness due to geopolitical instability from the U.S.-Israeli war with Iran. The conflict has disrupted energy flows in the Strait of Hormuz and damaged the reputation of Gulf producers, including Qatar, as reliable suppliers.

The project is a joint operation between Equinor and Shell, with partners including Exxon Mobil, Pavilion Energy, Medco Energi, and the Tanzania Petroleum Development Corporation. Estimated to cost 42 billion dollars, the facility would unlock 47.13 trillion cubic feet of natural gas, offering Asian customers a supply source not exposed to Middle Eastern geopolitical challenges.

In addition to the Tanzania project, Equinor plans to begin exploration drilling in Namibia's PEL 90 licence later this year. This follows the company's acquisition of a 17.4% stake in the prospect operated by Chevron.