Norwegian energy giant Equinor, together with Exxon Mobil, is set to begin talks with Tanzania to discuss plans for a potential liquefied natural gas (LNG) export project.
Tanzania’s government has been given the go ahead to proceed with negotiations by President John Magufuli and will start planning the fiscal and commercial framework for the project.
The project, which is attributed to a deepwater oil discovery, could potentially cost $30 billion, based on 2014 estimates. However, a spokesperson for Equinor stated that it was too early to discuss cost estimates, adding that it was also too soon to know how long discussions with Tanzania could take.
“Equinor will now proceed with our partner ExxonMobil with negotiations for a host government agreement,” the spokesperson said.