Work

Limbo in Lindi: Liquified natural gas, local content and displacement in Tanzania

Year: 2025

Type: article

Abstract: • Investors’ IFC compliance did not secure minimal displacement in Lindi. • Authorities saw the LNG project as a driver for local content and development. • Government-led land acquisition extended to adjacent areas. • Conflicting messages left PAP uncertain about compensation and resettlement. • Investors offered top-up compensation only to site-displaced households. This article examines the interplay between international standards and national regulations in land acquisition for extractive projects, using the planned Liquefied Natural Gas (LNG) project in Tanzania as a case study. Drawing on 69 qualitative interviews conducted between 2016 and 2023, complemented by secondary sources, the study explores how differing priorities of multinational oil and gas companies and Tanzanian authorities shaped displacement and compensation processes. While investors sought to adhere to IFC Performance Standard 5 to minimise displacement, government-led initiatives for local content and industrialisation expanded land acquisition beyond the LNG site, creating confusion and frustration among project-affected people (PAP). The study highlights gaps in grievance mechanisms, contested land rights, and the limitations of “top-up” compensation strategies, which may mitigate reputational risks for investors but exacerbate local inequalities. Government acquisition of adjacent land for industrial and housing purposes disrupted local livelihoods yet aimed to generate long-term benefits through ripple effects and employment - outcomes unlikely to arise from the LNG plant itself once operational. These findings contribute to debates on resource governance, involuntary displacement, and the social impacts of pre-extraction phases in resource-rich countries.

Source: The Extractive Industries and Society

DOI: 10.1016/j.exis.2025.101813

Authors: Siri Lange, Festo Gabriel

Institutions: University of Bergen, Ruaha Catholic University

Language: English

Topic: Mining and Resource Management

Subfield: Building and Construction

Field: Engineering

Domain: Physical Sciences

SDGs: Peace, justice, and strong institutions, Industry, innovation and infrastructure

Open Access status: hybrid

Estimated APC paid: $3,470