Dar es Salaam/Johannesburg — Royal Dutch Shell and Equinor say they are committed to a project that will allow the export of natural gas from Tanzania. Proposals to build a $30bn liquefied natural gas (LNG) plant, in gestation since 2014, have been clouded by policy uncertainty in Tanzania’s extractives industry. Investor sentiment towards the East African nation has been soured by the government’s overhaul of mining legislation that has enabled it to renegotiate contracts. Still, companies involved in the country’s gas industry maintain they are prepared to move forward. “For now, the focus is on agreeing to the host government agreement (HGA) that is to set the legislative, regulatory and fiscal terms for the project,” Sally Donaldson, a spokesperson for Shell, said in an e-mailed response to questions. Before a final investment decision is reached, an engineering study must be conducted that will last about two years and cost hundreds of millions of dollars, she said. Constructio...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, Morningstar financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00.