Rédaction Africa Links 24 with The East African
Published on 2024-03-03 03:00:00
The United States has issued a warning to Tanzania regarding potential repercussions for the long-anticipated liquified natural gas (LNG) project if negotiation delays persist. US Deputy Assistant Secretary of State Joy Basu expressed concerns to The EastAfrican in Dar es Salaam, stating that investors, including Exxon Mobil, were on the verge of walking away from the deal due to ongoing technicalities. Basu emphasized that the global market for LNG was competitive, and Tanzania’s window of opportunity for this investment was rapidly closing.
Basu, who oversees economic and regional affairs in Sub-Saharan Africa for the Joe Biden administration, stressed the urgency of finalizing the deal. Companies such as Exxon Mobil, Shell, Equinor, Pavilion Energy, Medco Energi, and Tanzania Petroleum Development Corporation have invested in the project, which has seen its estimated cost rise from $30 billion in 2014 to $42 billion by last year. Despite progress initially made in negotiations, there has been a lack of official updates since March of the previous year.
During her visit to Tanzania, Basu engaged with government officials to address the status of the project. She raised concerns about the potential consequences of further delays, urging the Tanzanian authorities to prioritize the completion of agreements and decisions necessary for project development. Shell and Equinor, key players in the project, expressed their readiness to proceed but emphasized the importance of timely finalization of agreements.
While the Tanzanian Energy Minister, Doto Biteko, acknowledged that negotiations for the Host Government Agreement were ongoing, there was a sense of urgency among investors to see progress. Basu’s meetings with various government ministries and agencies highlighted the importance of maintaining investor confidence and honoring commitments made during negotiations.
Basu cautioned against the risks associated with prolonged renegotiations and delays, citing potential repercussions for future investment in Tanzania. She stressed the need for transparency and reliability in government dealings to attract and retain major investors. The uncertainty surrounding the LNG project posed a significant challenge to Tanzania’s reputation as a reliable investment destination for infrastructure development.
In conclusion, the United States’ warning serves as a wake-up call for Tanzania to prioritize the LNG project and address lingering issues to prevent investors from withdrawing. The urgency to finalize agreements and decisions is paramount to securing a successful outcome for the project and maintaining investor confidence in Tanzania’s commitment to fulfilling its obligations.
Read the original article on The Citizen
