The disruption to energy flows in the Strait of Hormuz is making it more ​attractive for Equinor to develop a long-stalled liquefied natural gas export ‌plant in Tanzania, the Norwegian company said on Tuesday.

The U.S.-Israeli war with Iran is reshaping the global energy industry, stripping Qatar and other Gulf producers of their reputation as some ​of the world's most reliable suppliers as Tehran struck export plants and ​blocked shipments.

Discovered more than a decade ago, the massive Tanzania gas ⁠deposit is expected to cost about $42 billion to develop, the East African nation ​has estimated, and would provide an alternative source of supply for Asian customers.

YEARS ​OF NEGOTIATIONS

But Equinor's talks with Tanzania over detailed investment terms and conditions have been ongoing for years, and hopes for a breakthrough have been dashed on several occasions.

"You don't want ​to wait too long to put new LNG volumes on the market, so ​maybe now is a good time to get on with it," Equinor's head of international ‌operations, ⁠Philippe Mathieu, told reporters at an energy conference in Norway on Tuesday.

When asked if the Middle East LNG disruption is making the Tanzania project more attractive, Mathieu said: "Exactly. It means you are producing LNG in an area which is ​not exposed to these ​kinds of geopolitical ⁠challenges."

Equinor and Shell are joint operators of the mega gas project, which would unlock 47.13 trillion cubic feet of ​natural gas deposits, while Exxon Mobil, Pavilion Energy, Medco Energi, and Tanzania's ⁠national oil company TPDC are partners.

NAMIBIA OIL EXPLORATION

Mathieu also said Equinor hopes to make a "pretty big" oil discovery in Namibia's PEL 90 exploration licence, hoping to match ⁠major ​nearby finds made by TotalEnergies and Galp.

Equinor last week ​said it had bought a 17.4% stake in the Chevron-operated prospect and that exploration drilling would take ​place later this year. (Reuters, 2026-08-25)