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intent of investing -billion in a gas project that could export its output via the Greenstream pipeline. Eni has also added a number of gas-producing assets in Algeria, which has pipeline connections to both Italy and Spain, to its portfolio over the last year. However, some IOCs and EU states have focused on LNG-oriented endeavours that are in line with the growing flexibility of the global gas market. Italy is certainly set to benefit from Eni’s efforts on this front; over the last year, the company has arranged to import more LNG from two existing suppliers, Algeria and Angola, while also launching LNG exports from the Coral field offshore Mozambique and striking a deal with the Republic of Congo on its floating LNG (FLNG) project for the Marine XII fields. Eni is hardly alone. For example, the British giant BP said earlier this year that it anticipated making a final investment decision on the Yakaar-Teranga LNG project, which focuses on a group of fields off the coast of Senegal, before the end of 2023. Meanwhile, Shell (UK) and Equinor (Norway) revealed in mid-May that they had finished negotiations on the -billion Tanzania LNG project and expected to sign a host-government agreement and production-sharing agreement soon.And there are plenty of other examples. Altogether, there have been enough new investment pledges made that Africa is now on track to see its total LNG export capacity rise from the current level of 80-million tons per year to around 110-million tons per year by 2030 and to more than 175-million tons per year by 2040. NJ Ayuk, Executive Chairman, African Energy Chamber AFRICA’S SLOWLY EXPANDING CAST OF LNG PLAYERS But as the AEC explains in “The State of African Energy Q1 2023 Report”, these commitments are not going to change the picture for African LNG immediately. For the time being, the continent’s LNG business will continue to be dominated by the most established players: Egypt, Algeria and Nigeria, and to a lesser extent, Equatorial Guinea and Angola. Algeria and Egypt, our report notes, likely will maintain their Credit: APO Group existing LNG infrastructure capacity of about 29-million tons per year and 12.7-million tons per year respectively. Nigeria, meanwhile, will increase its LNG infrastructure capacity from 22-million tons per annum (MMtpa) to 30 MMtpa when it completes the Nigeria LNG (NLNG) Train 7 development, our report states. The project by Nigeria LNG, a venture comprising the Nigerian National Petroleum Corporation, Shell, TotalEnergies and Eni, calls for the construction of an additional LNG train and a liquefaction unit for Nigeria’s six-train Bonny plant. Train 7, which was about 32% complete in late 2022, is intended to meet local needs while increasing Nigerian LNG exports, diversifying Nigeria’s revenue portfolio and helping the country better capitalise on its 200 tcf of natural gas reserves. Nigerian maritime logistics company UTM Offshore, meanwhile, likely will nudge up Nigeria’s capacity to just over 31 MMtpa when it completes the FLNG project mentioned above. As of last November, the FLNG was expected to start operating in 2027. BP is due to begin first-phase production at Grand Tortue/Ahmeyim block in late 2023, and Eni and its partners are set to expand LNG production at the Coral field offshore Mozambique. Indeed, the AEC expects these projects to help push African LNG exports up to the equivalent of 66-billion cubic metres this year, up 5% on 2022. However, it’s going to take time to bring the rest of the new projects on stream and to build all these new onshore and offshore LNG plants. Tanzania LNG, for example, is not expected to begin production until 2028 and Eni’s Marine XII project will not reach its full capacity of three-million tons per year until late 2025. TotalEnergies of France is not likely to begin commercial operations on the Mozambique LNG project before 2025 and the US giant ExxonMobil will need even more time to launch its Rovuma LNG project in Mozambique, since it has yet to reach the final investment decision stage. This means that Algeria, Egypt and Nigeria will continue to account for the majority of the LNG coming out of Africa for the next few years and that the balance won’t really start to shift until the end of the decade. IOCs and EU states are currently laying the groundwork for expanding production and opening up new basins to support LNG projects, but it will take a few years for their efforts to pay off. For more insights on LNG projects and other developments in the African gas sector, read our “The State of African Energy Q1 2023 Report.” It is available for download at www.EnergyChamber.org. Distributed by APO Group. 42
COUNTRY PROFILE TANZANIA Dodoma is Tanzania’s new capital city. Credit: Sergey Pesterev/Pexels Capital: Dodoma. Other towns/cities: Dar es Salaam, Mwanza, Arusha, Mbeya, Morogoro. Population: 65.6-million. (2023). GDP, official exchange rate: $.60.6-billion (2021). GDP per capita. (PPP): 600 (2021). Currency: Tanzanian .shilling. Regional Economic Community: East African Community (EAC), Common Market for Eastern and Southern Africa (COMESA), Southern African Development Community (SADC). Landmass: 947 300km². Coastline: 1,424 km. Resources: Coal, diamonds, gemstones, gold, natural gas, nickel, phosphates, tin. Bananas, cashew nuts, cassava, cloves, coffee, cotton, sisal, tea, cotton. Main economic sectors: Tourism (Serengeti Plain, Mount Kilimanjaro). Agriculture, agro-processing, cement, fertiliser, mining, oil refining. Other sectors: Apparel, hydropower shoes, wood products. New sectors for investment: Protected areas have received significant investment in infrastructure: possibilities exist in eco-tourism, recreation facilities, trophy hunting and accommodation. Cruise ships. Gas and pipelines. Renewable energy. Key projects: Standard Gauge Railway (SGR) project. The fifth phase, connecting Dar es Salaam to Mwanza on Lake Victoria, was launched in 2021. Rukwa Power Plant. Hoima-Tanga crude oil pipeline. Chief exports: Cashew, coffee, cotton, gold, manufactured products. Top export destinations: India, South Africa, Kenya, Switzerland, Belgium, Democratic Republic of the Congo, China. Top import sources: India, China, UAE, Saudi Arabia, South Africa, Japan, Switzerland. Main imports: Consumer goods, machinery and transportation equipment, industrial raw materials, crude oil. Infrastructure: 10 airports with paved runways; two seaports at Dar es Salaam and Zanzibar; 4 097km of railways; 145 203km of roads (11 201km paved); pipelines: 311km gas, 891km oil, 8km refined products (2013); commercial trade with neighbouring countries via Lake Tanganyika, Lake Victoria, and Lake Nyasa (also known as Lake Malawi). ICT: Mobile subscriptions per 100 inhabitants: 85 (2021). Internet percentage of population: 32% (2021). ICT Development Index 2017 (ITU) ranking: 165, 28th in Africa. Climate: Coastal tropical region, temperate in the highlands. Kilimanjaro is the highest point in Africa and has glaciers. The country forms part of the Great Lakes region. Religion: Christian account for about 60% and Muslim 35% but Zanzibar is almost wholly Muslim. Modern history: Swahili, English and Arabic are the primary languages of the United Republic of Tanzania. Germany had to give up German East Africa after World War I. Soon after gaining independence from Britain, Tanganyika and Zanzibar united to form Tanzania in 1964, but Zanzibar continues to have a degree of autonomy. A new constitution ensured that the country has had multi-party politics since 1992. Samia Suluhu Hassan won election in 2021 as Tanzania’s first female president. Gas was discovered off the coast of Tanzania in 2012 and the new political leadership wants the country to become an exporter of liquid natural gas. A long-awaited inauguration of a new capital city at the centrally located Dodoma finally came to fruition in 2023. A new international airport at Msalato, Dodoma, is under construction. Dar es Salaam retains its importance as a business, trade and logistics centre. The country is pursuing new investments in tourism, wood processing and other forestry-related sectors such as beekeeping. 43
