Iran war makes multibillion-dollar Tanzania LNG more attractive, Equinor says
EQNR•Equinor says talks have dragged on for years
But Equinor's talks with Tanzania over detailed investment terms and conditions have been ongoing for years, and hopes for a breakthrough have been dashed on several occasions.
"You don't want to wait too long to put new LNG volumes on the market, so maybe now is a good time to get on with it," Equinor's head of international operations, Philippe Mathieu, told reporters at an energy conference in Norway on Tuesday.
When asked if the Middle East LNG disruption is making the Tanzania project more attractive, Mathieu said: "Exactly. It means you are producing LNG in an area which is not exposed to these kinds of geopolitical challenges."
Project partners and Namibia exploration plans
Equinor and Shell SHEL.L are joint operators of the mega gas project, which would unlock 47.13 trillion cubic feet of natural gas deposits, while Exxon Mobil XOM.N, Pavilion Energy, Medco Energi MEDC.JK and Tanzania's national oil company TPDC are partners.
Mathieu also said Equinor hopes to make a "pretty big" oil discovery in Namibia's PEL 90 exploration licence, hoping to match major nearby finds made by TotalEnergies TTEF.PA and Galp GALP.LS.
Equinor last week said it had bought a 17.4% stake in the Chevron-operated CVX.N prospect and that exploration drilling would take place later this year.
Strait of Hormuz disruption boosts Tanzania LNG case
The disruption to energy flows in the Strait of Hormuz is making it more attractive for Equinor EQNR.OL to develop a long-stalled liquefied natural gas export plant in Tanzania, the Norwegian company said on Tuesday.
The U.S.-Israeli war with Iran is reshaping the global energy industry, stripping Qatar and other Gulf producers of their reputation as some of the world's most reliable suppliers as Tehran struck export plants and blocked shipments.
