Tanzania LNG Slows as State Delays on Signing Agreement With Equinor, Shell

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(Bloomberg) — Tanzania is delaying key agreements needed to realize a $42 billion liquefied natural gas plant, slowing a project that developers Equinor ASA and Shell Plc warn has limited time to become a reality before demand for fossil fuels begins to wane.

Plans to connect offshore gas discoveries to feed an LNG export terminal on the East African nation’s coast have been in the works for a decade. The development appeared to gain momentum last year when Tanzania’s President Samia Suluhu Hassan expressed her support and negotiations were concluded over the host-government agreement — which outlines commercial legal and fiscal terms — and an amended production-sharing deal with the project consortium.