Construction of the multibillion-dollar Likong’o–Mchinga LNG plant is in top gear following compensation of individuals staying on the land where the project will be built.
According to Tanzania Petroleum Development Corporation (TPDC), 617 verified project affected persons have already been compensated, and some 39 people who had been earmarked for compensation have not shown up for verification, posing a challenge to the process.
“We are still waiting for them to come to us and verify their details before we can compensate them,” said TPDC’s head of public relations and communications, Ms Marie Msellemu.
The mega project located at Likong’o–Mchinga in Tanzania will be the most expensive liquefied natural gas plant in the region, expected to cost US$ 30 billion. It is anticipated to be complete in 2028.
In 2019, the Tanzanian government held talks with a group of foreign oil and gas companies led by Norway’s Equinor. The companies involved includedoincluded; Royal Dutch Shell, Exxon Mobil and Ophir Energy, and Pavilion Energy.
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The international oil companies (IOCs) will develop the project in partnership with the state-run Tanzania Petroleum Development Corporation (TPDC)
The LNG plant, is expected to spur the country’s economic growth by about two percent.
Tanzania has over 57.54 trillion cubic feet (tcf) of natural gas in its recoverable reserves, of which some of the gas it already uses for power generation and running of manufacturing plants.
A report released by consultancy firm PwC in 2019 show that Eastern Africa countries, led by Tanzania have increased investment in infrastructure projects in the past five years. Tanzania is ahead in terms of the value and number of projects launched by June last year, helped by the new Likong’o-Mchinga LNG plant.
Upon completion, the Likong’o-Mchinga LNG plant will have capacity to produce 10 million tonnes per annum (MTPA) of liquefied natural gas.
