Tanzania is banking on tax advantages to attract investors in a gas project.

Tanzania is in talks with investors to finalise tax incentives as part of an estimated $42 billion project to build a liquefied natural gas (LNG) plant. According to Energy Minister Doto Biteko, negotiations could be completed by June 2025.

The project, which aims to exploit the country's vast natural gas reserves, has been delayed by changes proposed by the government to a financial agreement signed in 2023. "The project has not stopped, we are negotiating conditions to make it viable for both parties," Biteko told Reuters at the India Energy Week conference.

Project operators include Equinor and Shell, while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania's national oil company TPDC are partners. The project will develop approximately 47.13 trillion cubic feet of natural gas.

To ensure its economic viability, certain government incentives will have to be granted, the Minister said. "We cannot give a precise date until the negotiations are completed, but we hope to conclude them by the end of the financial year, between now and June," Biteko said.

At the same time, Tanzania plans to launch an exploration licensing round for 26 oil and gas blocks on 5 March. This initiative is part of the country's strategy to attract more investment and boost its energy sector.

By unlocking this major project, Tanzania hopes to strengthen its role as a major supplier of natural gas in Africa and on the international market, while boosting its national economic growth.