Tanzania's LNG Plant Could Cost $30 bn

Tanzania’s proposed LNG plant could cost up to $30 billion, according to country’s energy minister.

"The investment in this LNG plant is between $20 billion and $30 billion," the Energy and Minerals Minister Sospeter Muhongo told a news conference on Thursday, reported news agency Reuters. The Minister declined to disclose how the cost would be met or the location of the project.

Tanzania is estimated to have 53.2 trillion cubic feet (tcf) of gas. 

BG Group along with Ophir Energy, ExxonMobil and Statoil plan to invest in a two-train LNG plant in Tanzania's southern Lindi region.

However, analysts warned that recent demands by a parliamentary committee for all oil and gas contracts in Tanzania to be made public could further delay progress in the sector, Reuters said. Muhongo said the government would not make the contracts public without the consent of investors due to confidentiality clauses.