May 1, 2013 / 8:01 AM / 4 years ago

BG's Tanzania gas plans move ahead, to propose locations

LONDON, May 1 (Reuters) - British gas firm BG Group said it will present the Tanzanian government with proposed locations for a huge liquefied natural gas (LNG) terminal in the next few months, as the project moves ahead after another successful drilling test.

Gas finds off Tanzania and Mozambique have led to predictions that East Africa could become a big exporter of LNG, but first large facilities need to be built to enable the development of the gas.

BG’s chief executive Chris Finlayson indicated on Wednesday that the process to draw up plans for the LNG project were well underway.

“BG Group and others are jointly studying suitable sites for a potential onshore LNG terminal and anticipate providing proposed locations to the Tanzania government in the next few months,” Finlayson said in a statement.

The company is working with its exploration partner Ophir and Statoil, the Norwegian company which has found gas in the waters near to BG’s discoveries, on the $10 billion planned project.

BG and Ophir also said on Wednesday that their latest drilling test on the Tanzanian gas field was successful, showing better than expected flow rates in a new part of the geology, which Ophir said would boost the field’s estimated resources.

Shares in Ophir climbed 2.6 percent, while BG was up 0.1 in early trading. The two will begin a new exploration programme in Tanzania later this year.

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