Equinor, the Norwegian international energy company, said Tanzania’s long-delayed liquefied natural gas project is becoming more attractive as disruptions in the Strait of Hormuz expose the risks facing LNG supplies from the Middle East.

The company has been in talks with Tanzania for years over investment terms for the proposed $42 billion project. But the latest disruption to energy flows through the strategic waterway could strengthen the case for developing new LNG supply outside the region.

“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,” Philippe Mathieu, Equinor’s head of international operations, told reporters at an energy conference in Norway on Tuesday.

Asked whether the disruption to Middle East LNG supplies had made 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.”

Years of talks over Tanzania LNG

Tanzania’s massive offshore gas reserves were discovered more than a decade ago, but negotiations over the development terms have dragged on, with hopes of a final agreement repeatedly pushed back.

The project would unlock an estimated 47.13 trillion cubic feet of natural gas and create a new LNG supply center for Asian buyers. Equinor and Shell are joint operators, while Exxon Mobil, Pavilion Energy, Medco Energi and Tanzania’s state-owned Tanzania Petroleum Development Corp. are partners.

The disruption around the Strait of Hormuz has renewed attention on the importance of supply diversity. The waterway is a major route for global energy shipments, and the conflict involving the U.S., Israel and Iran has added fresh uncertainty to LNG and other energy flows from the Gulf. For Tanzania, the project could bring billions of dollars in investment and provide the country with a larger role in the global gas market.

Equinor targets Namibia oil discovery

Mathieu also said Equinor is hoping for a major oil discovery in Namibia, where it holds a stake in the Chevron-operated PEL 90 exploration license.

Equinor last week said it had acquired a 17.4% interest in the prospect, with exploration drilling planned for later this year. Mathieu said the company hopes the well can deliver a significant discovery comparable with major finds made nearby by TotalEnergies and Galp.

Equinor’s global operations span 20 countries

Equinor, headquartered in Stavanger, Norway, employs about 25,000 people and operates in more than 20 countries. The Norwegian government owns 67% of the company.

The Norwegian continental shelf remains central to its business, alongside operations in the U.S., Brazil, the U.K., Angola and Canada. Equinor remains a major energy supplier to Europe, with a portfolio spanning oil and gas, renewables and lower-carbon technologies.

The company recently completed its exit from Nigeria after selling its local business and interest in the Agbami deepwater oil field to Chappal Energies.