Wednesday 28th January 2026
By inAfrika Newsroom
Tanzania LNG project timeline expectations sharpened on Wednesday as officials indicated construction could start toward year-end, reinforcing signals that one of East Africa’s largest energy investments is moving closer to execution after years of delay.
A CNBC Africa report cited a deputy minister saying Tanzania would start construction of the LNG plant at the end of the year. Separately, Reuters reported earlier this week that Tanzania expects to sign a deal before June for the stalled project, valued at about $42 billion, with production projected to begin years later.
The LNG development is closely watched because it sits at the junction of energy security, export earnings, and industrial policy. Tanzania has sizeable offshore gas resources, but commercialising them at scale requires complex agreements on fiscal terms, domestic gas allocations, and infrastructure responsibilities.
The project’s revival also comes as global gas markets remain sensitive to geopolitics, shipping constraints, and shifting demand forecasts. For African gas exporters, the central policy question is how to secure long-term offtake commitments while meeting domestic energy needs and navigating tightening climate-related scrutiny from some lenders.
Tanzania’s push is likely to influence regional thinking on project structuring. Mozambique’s LNG experience has highlighted both the revenue upside and the security and operational risks tied to mega-projects. Investors typically look for stable regulatory frameworks, predictable taxation, and clear dispute-resolution mechanisms before committing large capital.
Officials and analysts say timelines still depend on closing bankability gaps: final investment decisions, EPC contracting readiness, and lender alignment. Even small uncertainties can slow megaproject mobilisation.
Next steps
Tanzania LNG project timeline work now centres on concluding the host government agreement and commercial terms, then moving into contracting and financing milestones that would allow full construction mobilisation.
Why it matters
A major LNG build could reshape Tanzania’s export profile and fiscal outlook, while testing how East Africa balances energy monetisation, industrial development, and long-cycle project governance.
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