Ophir Says Tanzania LNG Terminal Project Could Be Expanded

Ophir Energy, a shareholder in Tanzania’s proposed first LNG terminal, announced that the terminal could be expanded as project partners discovered more gas than expected.

“The discovered resource base has now comfortably exceeded the threshold for two, 5 million tonnes per annum Trains of LNG from the JV acreage. The appraisal activity on Blocks 1, 3 and 4, including the multiple flow-tests, has not only increased recoverable resource estimates but also substantially de-risked the commercial delivery of volumes for the planned LNG development,” Ophir said said in its 2013 results statement on Thursday.

In December, BG Group, operator of Blocks 1, 3 and 4 offshore southern Tanzania announced increase recoverable resources to be around 15 tcf.

BG Group as operator has a 60% interest in Blocks 1, 3 and 4, with Ophir Energy holding 40%.

“The JV has been working closely with Statoil and Exxon, the partners in neighbouring Block 2, which have made a number of gas discoveries, over the site for a shared LNG facility. A preferred location for the facility has been selected and the Government of Tanzania has been informed of this preference,” Ophir said.

Ophir stated that the common facilities at the LNG site will be managed by a single operator while the individual trains will be operated and owned by the separate JVs.

“The BG-Ophir JV is working towards commencing pre-FEED studies in 2014 with a view to making a FID in 2016. First gas exports are expected in 2020,” Ophir announced.

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