Windmills on field

What we do

Shell is an integrated energy company that aims to meet the world’s growing demand for energy in ways that are economically, environmentally and socially responsible.

Development of the deep-water gas has the potential to transform Tanzania with the job opportunities it will create for Tanzanians, the gas it will provide to power the country’s industrialization and the revenues the Government will get from the project. There is more than enough gas for own consumption in country for current and future use for both power and use in industries as well as selling to global LNG market that is projected to grow vastly in the next 20 years. In order to make this development a reality, the Government and investors must continue to work hand in hand and act quickly to capture this opportunity and ensure that the project is cost competitive and has a stable and predictable regulatory regime

Shell Tanzania

Shell Exploration and Production Tanzania Limited

When Shell Plc (Shell) acquired BG Group and assumed ownership of BG’s assets in February 2016, the opportunity arose for Shell to monetize the resources discovered offshore Tanzania. Shell’s presence in Tanzania began in the late 1930s with minimal exploration activities. Shell came back to Tanzania after a BG Shell combination in 2016 and became the operator of two offshore blocks, Block 1 and Block 4, together with its partners Medco Energi (Ophir Energy) and Pavilion Energy.

After extensive exploration activities in the two blocks, significant deep-water gas discoveries, sufficient to support a multi-train land-based LNG project, have been made.

  • 22 exploration and appraisal wells drilled (over 90% success rate).
  • 16 Trillion Cubic Feet (TCF) of natural gas discovered
  • Fields are located 100 km from the shoreline
  • Over 4.5 Trillion Tshs ($2 billion)

Shell Exploration and Production Tanzania Limited with its partners are currently working with the Government of Tanzania on cost-competitive development options for the Tanzania Gas and LNG project and establishment of the commercial framework for the project. The project is currently focused on selecting the optimal integrated upstream and liquefied natural gas project. The Tanzania LNG project is at a stage where detailed planning and multiple agreements need to be agreed upon between the International Gas companies (IOCs) and the Government.

Shell worldwide

Shell worldwide

Shell is a global group of energy and petrochemical companies.

Our operations are divided into four businesses: Upstream, Integrated Gas and New Energies, Downstream, and Projects & Technology.

In Upstream we focus on exploration for new liquids and natural gas reserves and on developing major new projects where our technology and know-how add value for resource holders.

In Integrated Gas and New Energies, we focus on liquefying natural gas (LNG) and converting gas to liquids (GTL) so that it can be safely stored and shipped to markets around the world. The New Energies business has been established to explore and invest in new low-carbon opportunities.

In Downstream, we focus on turning crude oil into a range of refined products, which are moved and marketed around the world for domestic, industrial and transport use. In addition, we produce and sell petrochemicals for industrial use worldwide. Shell’s oil sands mining activities in North America are also part of the Downstream organisation.

Our Projects & Technology business is responsible for delivering new development projects and the research and development that leads to innovative and low-cost investments for the future.

An animated look at innovation

Exploration of natural gas off the coast of Southern Tanzania

Title:  Shell TVC - English

Duration: 3:25 minutes

Description: 

Exploration of natural gas off the coast of Southern Tanzania.

Shell TVC - English Transcript

 

 [Voiceover]

Since 2010 we’ve been exploring for natural gas up to 100 kilometres off the coast of Southern Tanzania, operating in waters around two kilometres deep, one of the most modern vessels of its type equipped with the latest in satellites and drilling technology has been drilling gas bearing [?] rocks up to four kilometres beneath the sea floor.   

[Video footage]

Animated footage of drillship at sea pans to various views of ship. A helicopter landing on ship. View of ship showing depths of drilling underwater. Diagram shows depth of 2Km water and lower 4Km rock. 

[Voiceover]

At these extreme depths the gas is trapped in reservoirs, some as large as 180 square kilometres. Wells drilled into the rocks releases the gas giving it a path to flow.

[Video footage]

Shot changes to show drilling equipment beneath the surface of the water and pans down to show entire depth. Shot changes to long view of drillship on surface of sea.

[Voiceover]

We’ve made multiple discoveries, extracting the gas and bringing it to shore is technically challenging, complex and costly, involving multi-billion-dollar investments. The plan is for gas to flow up through well heads and then along hundreds of kilometres of sub-sea pipelines on the ocean floor up the continental shelf, then on to shore. 

[Video footage]

Various shots of machinery and pipelines showing how the gas is brought to shore.

[Voiceover]

Once on land a portion of the new gas reserves will go towards meeting demand for energy in Tanzania. Where existing and potentially new gas appliance power generation is available the gas could be used to cool and light homes, cook meals and to power vehicles, industries and factories.

[Video footage]

Animated sequence showing path of the gas to industrial areas and homes. Homes are shown with the lights being turned on, and food being cooked on a gas hob.

[Voiceover]

At the onshore gas processing plant the gas will be cleaned and cooled in huge refrigeration units known as liquification trains at a temperature of minus 160 degrees Celsius the gas becomes liquid, commonly known as liquified natural gas or LNG.

[Video footage]

Views of many refrigeration units panning out to shot from above.

[Voiceover]

The LNG process substantially reduces the volume of the gas, similar to shrinking a football to the size of a marble. This makes the gas easier to transport safely to customers around the world in specially designed ships. The gas is then shipped and sold abroad with revenue coming back to Tanzania.

[Video footage]

Various views of the specially designed ships that transport the gas around the world.

[Voiceover]

This new high technology industry offers Tanzania the opportunity to develop its natural gas reserves, diversifying and expanding the country’s economy, attracting support, businesses and creating jobs. An LNG export project could significantly boost government revenues providing funds with the potential to transform Tanzania’s social and economic development.

[Video footage]

Map of Tanzania appears onscreen panning in to show Mtwara, Lindi on the coastline of the Indian Ocean. The shots pans up to show position of Dar es Salaam, Tanga, Dodoma, Mwanza, Bukoba, Kigoma, Mbeya, Songea. View of the maps pans out to show the positions of these locations in Tanzania. 

[Voiceover]

We’ve made a good start, but much work is still to be done. Early engineering and studies on potential environmental, social and economic impacts have been completed. A decision to proceed will come after terms and conditions have been mutually agreed between the government of Tanzania and the investors.

[Video footage]

The view of the maps pans out show the map of Tanzania in full.

[Voiceover]

Following a decision to go ahead after a construction period of around five years production will commence establishing Tanzania as a leader in the emerging East African natural gas province.

[Video footage]

Various views of factories. Shot of sky with blazing sun.

[Audio]

Shell jingle

[Text displays]

#makethefuture

[Graphic]

Shell Pecten centred on a white background.

  

Innovating to shape the world's energy future

Our strategy seeks to reinforce our position as a leader in the oil and gas industry, while helping to meet global energy demand in a responsible way. Safety and environmental and social responsibility are at the heart of our activities.

Read about our strategy

More in about us

Who we are

We aim to meet the energy needs of society in ways that are economically, socially and environmentally viable, now and in the future. Learn about our business and people, which grew from a small shop in London nearly 200 years ago to become a major energy company.

Our values

Our General Business Principles, Code of Conduct and Code of Ethics help everyone at Shell act in line with our values.

The Shell brand

Reports and publications

Contact us

You may also be interested in

Energy and innovation

How we use human ingenuity, innovation and technology to unlock more, cleaner energy for the decades ahead.

Sustainability

Sustainability at Shell is about delivering energy in a responsible way to meet the world’s growing needs.