The total cost of Shell and Equinor’s massive Tanzania liquefied natural gas project — including life-of-field costs — is about $42 billion, according to a senior government official.

The two majors aim to feed gas from three deep-water blocks offshore southern Tanzania to a 15 million tonnes per annum LNG plant to be built at Lindi on the coast.

Talks between Shell, Equinor and Tanzania over a host government agreement (HGA) that defines the project’s underpinning fiscal, legal and local content measures — for what could turn out to be the region’s costliest ever project — are nearing a conclusion.