Tanzania is moving closer to finalising a US$42 billion liquefied natural gas (LNG) project, marking a significant development in the country’s energy and industrialisation plans.

Finance Minister Khamis Mussa Omar told Reuters on October 13 that agreements for the major project are nearing completion, with officials hoping to finalise arrangements in the coming months.

The project, led by energy companies Equinor and Shell, is expected to help unlock Tanzania’s estimated 47.13 trillion cubic feet of natural gas reserves. Other partners include ExxonMobil, Pavilion Energy, Medco Energi and the state-owned Tanzania Petroleum Development Corporation.

Although most of the gas is intended for export, a portion is expected to serve Tanzania’s domestic market. The development could create opportunities across energy infrastructure, logistics and related industries, although the scale and timing of any benefits will depend on the project’s final agreements and implementation.

The government is also targeting a substantial expansion of electricity generation capacity, aiming to reach 8,000 megawatts by 2030. Officials have outlined plans to increase the contribution of energy sources they classify as clean, including hydropower, solar, wind and natural gas.

The next major milestone will be the completion of the LNG agreements. The project’s progress will be closely watched by investors and communities looking for details on investment, employment opportunities, environmental safeguards and the potential benefits for Tanzania’s economy.