Tanzania is edging closer to finalising its long-delayed liquefied natural gas (LNG) project, with negotiations between the government and international energy companies now in an advanced stage.
The project—estimated at about $42 billion—is expected to be one of the largest energy investments in Africa, targeting offshore gas reserves in the southern regions of Lindi and Mtwara.
Officials say discussions are focusing on finalising key commercial and fiscal terms, including revenue-sharing frameworks and regulatory conditions required to unlock a final investment decision.
The LNG development has been under negotiation for more than a decade, with previous delays linked to complex contract structures, cost concerns, and global market conditions.
If concluded, the agreement would pave the way for construction to begin, positioning Tanzania as a major exporter of liquefied natural gas and strengthening its role in regional and global energy markets.
Investors have signalled cautious optimism, with momentum building as both sides work toward closing outstanding issues. Analysts say the deal’s completion would mark a turning point for Tanzania’s energy sector, unlocking long-term export revenues and attracting further foreign investment.