Tanzania shops for advisers on $30b gas project

Monday May 14 2018

A view of a natural gas processing plant in

A view of a natural gas processing plant in Atuabo, Ghana. Last year, Tanzania received a $29.8 million loan from the African Development Bank (AfDB) for the development of a gas plant. AFP PHOTO | CHRIS STEIN 

By ALLAN OLINGO
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Tanzania is looking for a transaction adviser for its natural gas project, raising hopes that the $30 billion project is entering a crucial stage of development.

The search for consultancy services comes barely a month after one of the gas pipeline development partners indicated that it would be signing the Host Government Agreement with Tanzania later this year.

Now, Tanzania Petroleum Development Corporation (TPDC) is seeking a transaction adviser to support the government negotiation team.

“The work of the transaction adviser would include developing a commercial, legal and technical framework for the LNG project, building capacity and supporting the government team, and devising the best approach for negotiating the host government agreement,” TPDC said in a notice, adding that the contract will last two years.

Tanzania needs more than $30 billion to build a gas plant with an export terminal. The country expected to construct a liquefied natural gas plant from the start of this year, with a target completion of 2024.

Loan