East Africa and Australia in LNG export battle

BG Group has enjoyed a string of exploration successes in Tanzania. (Image source: BG Group)BG Group has enjoyed a string of exploration successes in Tanzania. (Image source: BG Group)The impressive strike rate of 24 oil discoveries from 27 East African test wells could place pressure on Australia’s LNG exports according to a new report

The report by The Australian newspaper said 100 trillion cubic feet (tcf) of recoverable gas reserves had been discovered in Tanzania and Mozambique since mid-2010.

Exploration companies say that this figure may even double.

Australia currently exports 25 million tonnes of LNG per year while East Africa plans to export 36 million tonnes annually, according to the report.

"East Africa has been touted as the next major theme in global LNG supply, given the size of the resources and lack of local gas demand," Deutsche Bank energy analyst, John Hirjee, was quoted as saying by The Australian.

East Africa could feasibly overtake Australia as one of the world's biggest LNG hubs behind Qatar.

"The search for diversity favoured recent Australian developments as an alternative to over-reliance on the Middle East," Hirjee was quoted as saying.

"However, with Australia now set to be the world's largest LNG supplier by about 2017, East Africa offers a new source of supply to risk-averse LNG buyers."

READ MORE...

Fifth Tanzanian find for BG Group

Shell’s Cove bid could start East African gas race

Southern and East Africa gas boom ‘brings opportunities’

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

twn Are you sure that you want to switch to desktop version?