Iran war makes multibillion-dollar Tanzania LNG more attractive, Equinor says

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The disruption to energy flows in the Strait of Hormuz is making it more attractive for Equinor to develop a long-stalled liquefied natural gas export plant in Tanzania, the Norwegian company has said, Reuters reports.

Discovered more than a decade ago, the massive Tanzania gas deposit is expected to cost about $42 billion to develop, the East African nation has estimated, and would provide an alternative source of supply for Asian customers.

“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,” Equinor’s head of international operations, Philippe Mathieu, told reporters at an energy conference in Norway.

When asked if the Middle East LNG disruption is making the Tanzania project more attractive, Mathieu said: “Exactly. It means you are producing LNG in an area which is not exposed to these kinds of geopolitical challenges.”

Equinor and Shell are joint operators of the mega gas project, which would unlock 47.13 trillion cubic feet of natural gas deposits.

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