BG Moves Ahead With East Africa LNG Terminal Plans

BG Group 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, Reuters said.

On Tuesday, Ophir Energy and BG Group announced the successful Mzia-2 Drill Stem Test (DST), Block 1. Ophir estimates mean recoverable resources from the Mzia Field have increased 22% from 3.5 TCF to an estimated 4.5 TCF.

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, Reuters reported.

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.

Ophir and BG are planning to begin a new exploration programme in Tanzania later this year.