Finance Minister Khamis Mussa Omar announced that talks on a KSh 5.4 trillion (US$42 billion) liquefied natural gas (LNG) project are nearing conclusion, after an earlier target to sign a formal agreement before June 2026 was missed.

The venture is led by Equinor and Shell, with additional partners including ExxonMobil, Pavilion Energy, Medco Energi and Tanzania Petroleum Development Corporation.

It aims to develop offshore reserves estimated at 47.13 trillion cubic feet of gas, primarily for export, while allocating a portion for domestic supply.

The project is central to Tanzania’s strategy to become a regional energy powerhouse and to attract foreign investment, job creation and new revenue streams for public development programmes.

Tanzania is also expanding its domestic debt market to foreign investors as aid inflows shrink, seeking alternative financing for large‑scale projects.

The government plans to double its electricity generation capacity to about 8,000 MW by 2030 and raise the share of clean energy to roughly 75 %, including hydropower, solar, wind and natural gas.

Regional energy dynamics

Tanzania’s broader reforms this year have widened foreign access to its bond market, introduced a sovereign yield curve and encouraged corporate debt issuance, though an international bond issue remains under review.

Domestic revenue now funds about two‑thirds of the nation’s 62.3 trillion shilling budget, while the government weighs a new IMF programme with a decision expected by June.