Such delays have frustrated attempts to finalise the proposed multi-billion LNG plant, which aims to exploit huge offshore gas finds. Before the land purchase went through, analysts said that oil companies were not allowed access to the site.
Ahmed Salim, senior associate at consultancy Teneo Intelligence, said in a note to clients: "The next key thing to watch is how quickly a host government agreement is executed between the Tanzanian government, TPDC and IOCs (international oil companies)."
After the discovery of substantial deposits of crude oil were found in Uganda, and major gas reserves in Tanzania and Mozambique, East Africa has become a new hotspot for hydrocarbon exploration.
With the rapid development of other LNG projects around the world, the best deals for long term gas sales contracts will likely be secured by those who come on stream first, analysts have said.