Tanzania is developing large natural gas projects in the south of the country. Currently a small gas producer, Tanzania has potentially transformational gas reserves of 56.5 tcf, though a portion of these remain unproven. Equinor and Shell are the biggest players currently operating in the country. After entering in 2011, Equinor has drilled a total of fifteen exploration wells, resulting in nine discoveries of an estimated 20tcf. Shell holds two offshore deep-water blocks in partnership with Ophir Energy and Pavilion Energy. These hold around 16 tcf of gas.
Stalling again earlier this year, talks with a consortium led by Equinor, along with Shell, Exxon Mobil, Ophir Energy and Pavilion Energy, are set to resume shortly. The subject of discussion is the construction of an LNG export terminal near huge deep-water natural gas discoveries. This project could potentially open Tanzania up as a major gas exporter. Low gas prices and harsh fiscal terms, including state royalties, had threatened to derail the project, but both Equinor and Shell recently reaffirmed their commitment to the country.