Oilbi's LNG Project

Overview

The Oilbi LNG Project, named Mvua Kubwa Project (meaning “heavy rain” in Swahili) is a fully integrated liquefied natural gas development led by Oilbi Ltd. The project plans to develop offshore natural gas resources from Block 3R - where Oilbi holds 100% exploration and operating rights - and construct an onshore LNG facility with an annual production capacity of 2.5 million tons. Initial production is targeted for early 2031, with operations planned over a 26-27 year period.

An architectural rendering of an LNG plant designed by Baker Hughes in 2020.

Objectives

• To produce and export LNG to rapidly growing Asian and global markets with a focus on South Korea, leveraging strategic partnership with leading Korean companies.
• To contribute to Tanzania’s industrial growth, job creation, and technology transfer, while upholding international ESG standards.

Project Site

• The plant will be located in Mtwara, a southeastern coastal region of Tanzania
• Oilbi has already secured the site, and the location has strong potential due to integration with local facility and regional development initiatives.

Project Cost

• Total estimated cost: USD 3.6 billion
• Construction costs: approximately USD 3.3 billion including onshore facility and subsea pipelines.
• Non-construction costs: approximately USD 300 million.

Project Advantages

• Large-Scale Reserves: 3.5 Tcf proven and up to 36 Tcf probable natural gas reserves; stable production 26-27 years at 2.5MTPA.
• Strategic Location: Mtwara site with access to shipping routes and proximity to Asian markets.
• Strong Partnerships: Collaboration with top Korean and global companies delivering technology, EPC and financing strength.
• Stable Political and Economic Environment: Tanzania’s relatively stable climate and pro-investment policies.
• Korea–Tanzania Economic Ties: Strengthening bilateral cooperation across sectors via strategic partnership.

Expected Project Timeline

• 2025 Q4: Sign PSA; strengthen core team; compile documents; preliminary meeting with KOGAS.
• 2026 Q1: Begin full discussions with KOGAS and partners; JV structure talks; feasibility studies; permits and host negotiations.
• 2026 Q2–Q4: Finalize JV; complete FEED; launch HGA negotiations.
• 2027: Wrap up HGA and permitting; secure SPA off-take; reach FID; finalize financing and EPC; begin early works.
• 2028–2029: Full-scale plant, marine and subsea pipeline construction; ongoing local content and community programs.
• 2030: Complete construction; pre-commissioning and cold tests.
• Early 2031: Commissioning, first LNG production and steady-state ramp-up.