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Hormuz crisis makes Tanzania LNG project more attractive for Equinor

Equinor said LNG output from Tanzania would be less exposed to Hormuz linked geopolitical disruptions, even as it and Shell face prolonged negotiations with the Tanzanian government.

Reported · Written up by our desk · Energy

Equinor said the Middle East conflict and the resulting supply strains through the Strait of Hormuz have increased the appeal of a large LNG export project in Tanzania, Reuters reported.

The Norwegian energy major estimated the Tanzania LNG project at $42 billion and said the crisis has reduced confidence in some Gulf suppliers while making an alternative supply area more attractive for new LNG volumes.

Equinor’s executive vice president for international exploration and production, Philippe Mathieu, said LNG volumes should not be delayed and that it could be a good time to move the project forward.

However, Equinor and its co-operator Shell have spent years in difficult talks with Tanzania’s government and authorities, and the provisional Tanzania LNG project has not advanced much this decade.

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