Statoil, BG to build Tanzania LNG plant, energy minister says

Statoil (STO) and BG Group (BRGYY, BRGXF) will build Tanzania’s first liquefied natural gas plant in Lindi and are due to meet with authorities about the project’s schedule and details in April, according to the country's energy minister.

STO has discovered as much as 20T cf of natural gas in Block 2, and BG believes recoverable volumes are as much as 15T cf in three neighboring blocks.

Production could start in 2021 or 2022, and investments could hit $20B-$30B, STO has said.

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Comments (2)
  • saratogahawk
    , contributor
    Comments (2538) | Send Message
    Looking at the gas fields. Looks like potential for lots more gas than STO has estimated to date. With an LNG plant here Tanzania could do really well for itself. Look out for China declaring war on Tanzania and taking over these gas fields.
    14 Feb 2014, 12:49 PM Reply Like
  • stocknerd
    , contributor
    Comments (1503) | Send Message
    Sorry to say this, but it is reality in most of Africa. The bribes alone to get those oil and NG field up and pumping will be high in Tanzania. Let's see what an honest, international Scandinavian country can do when payoff time comes. It will take longer than 2022 to make the deal unless STO practices "local customs.."
    14 Feb 2014, 04:32 PM Reply Like
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