Shell Tanzania is a full-fledged Integrated Gas business operation based in Dar es Salaam, the commercial capital of Tanzania. Shell Tanzania’s main assets are two offshore deep-water blocks (Block 1 & 4) held in partnership with Ophir Energy and Pavilion Energy. The blocks hold some 16 Trillion Cubic Feet (TCF) of recoverable gas. Statoil of Norway and ExxonMobil hold an adjacent block (Block 2) with almost same volumes of recoverable gas. All these blocks together hold sufficient gas to enable a shared onshore LNG liquefaction plant.
The government has allocated land for this facility in Lindi, located on the southern Tanzanian coast. All five investors work in close partnership with the Tanzanian national oil company, Tanzania Petroleum Development Corporation (TPDC). The so-called integrated Tanzania Gas and LNG Project (TGP) is currently at pre-DG2 phase, but much technical preparatory work has already been completed by the partners. The TGP will be the largest investment ever to be undertaken in Tanzania. In addition to producing LNG for export, the project will also add to Tanzania’s supply of domestic gas, thus supporting development of the country’s energy infrastructure with an additional source of clean-burning gas for power generation and industrial activities.
Commercial negotiations are currently ongoing with the government of Tanzania to develop the legal, regulatory, and fiscal structures required to allow the project to proceed. The speed of progress of these negotiations will determine the timeline for project implementation.