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

• 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.