(Ecofin Agency) - Statoil has announced that the final investment decision on Tanzania's $30 billion onshore liquefied natural gas (LNG) export terminal will not be made for at least five years or much longer.

According to Statoil's Tanzania country manager, Oystein Michelsen (photo), it would take another five years after the decision to construct the plant. “We are prepared for the project to take a long time, but we could bring it forward if the government is ready. We are not schedule-bound ... if the government delivers we would need five years until an FID,” he told Reuters.

The East African Country’s natural gas reserves are estimated at over 55 trillion cubic feet (tcf) and the central bank is confident that commencing work on the plant would add a further 2% points to the current annual economic growth of 7%. The Tanzanian government is eager to promote the project, but there have been little talks of the timeline.

In August, President John Magufuli directed officials to fast-track long-delayed work on the plant, a project which involves BG Group, Statoil, Exxon Mobil and Ophir Energy in collaboration with the state-run Tanzania Petroleum Development Corporation (TPDC).

The president has said that he wanted outstanding issues resolved in order for construction to begin immediately.

Anita Fatunji