M a r k e t N e w s

Tanzania: Investors Wait for Govt Approval On LNG Plant Site

Posted on : Wednesday , 29th October 2014

 

 
 
MULTINATIONAL oil and gas companies operating in Tanzania are waiting for a government approval on their proposal for a suitable location for a liquefied natural gas (LNG) plant.
 
According to the BG Group's External Communications Manager, Mark Todd, BG Group and Statoil had sent to the government a joint proposal on the suitable site for the plant. " ... the Tanzania government requested BG Group and Statoil to provide a joint proposal identifying and evaluating potential sites for an onshore LNG export facility.
 
We have submitted that proposals are awaiting feedback," he said in an e-mail to the 'Daily News.' He, however, declined to give more details about their proposal.
 
Tanzania is set to become a major hydrocarbon exporter after discovery of massive natural gas reserves estimated to reach at least 50.5 trillion cubic feet.
 
Major multinational oil and gas companies including Norway's Statoil, Brazil's Petrobras, Royal Dutch Shell , BG Group and Exxon Mobil are active in the country's thriving energy sector.
 
China's state-run offshore oil and gas producer CNOOC Ltd and Russian gas producer Gazprom have also been drawn in after submitting bids for four of the eight oil and gas blocks that were offered in the fourth offshore licensing round.
 
The government is in final stages of evaluating the bids and may pick the winners before the end of this year. Media reports quoted BG Tanzania head of policy and corporate affairs Fred Kibodya as saying a feasibility study that had just been concluded shortlisted at least 10 suitable locations for LNG plant.
 
Statoil announced its Tanzania gas liquefaction plan to start up in 2021 or 2022 at the earliest. The spokesperson for the firm, Knut Rostad was quoted as saying preliminary schedule indicated that it was not realistic to start up production before 2021-22, at the earliest.
 

Source : energy mix report
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