LONDON May 1 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
"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.