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 (LNG) export plant in Tanzania, the Norwegian company said on Tuesday.

The US-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.