BG flags up hope for two-train LNG plant in Tanzania

BG Group has confirmed that it has set its sights on a two-train onshore LNG export development on Tanzania's coast

Chief Executive Frank Chapman noted that the company has already proved up sufficient reserves for a floating liquefaction plant BG and partner Ophir Energy have made three key discoveries off Tanzania, most recently at the Chaza-1 exploration well in Block 1. They scored earlier hits with the Pweza- and Chewa-1 wells in Block 4 to the north.

"The two that have already been made in the north, those discoveries we already know are soundly economic as a floating LNG development, but we will of course be pursuing further drilling," Chapman said.

BG recently signed a one year US$175mn deal with Odfjell Drilling to deploy the newbuilding drillship Deepsea Metro 1 to begin a second exploration campaign off Tanzania later this year.

"That will be aimed at adding to the current resource tally with a view to underpinning a land-based two-train LNG project, " Chapmans said.

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