BG Group upgrades Tanzania gas estimate following new offshore find

7/26/2013

BG Group upgrades Tanzania gas estimate following new offshore find

BY SELINA WILLIAMS

LONDON -- BG Group raised its estimate for total gross recoverable resources of natural gas from its Tanzania discoveries to around 13 Tcf following its eighth consecutive find off the East African country's coast.

The increase of the estimate from 10 Tcf underscores the region's importance as one of the energy industry's hottest new areas. Neighboring Mozambique with its discoveries of giant offshore natural gas fields aims to export its first cargoes of LNG by 2018. Analysts say the region is well placed to serve growing energy demand in Asian markets.

The mounting volume of gas discoveries off the coast of East Africa has already stimulated a wave of multi billion dollar acquisitions in projects in Mozambique.

BG Group said it had its eighth consecutive gas discovery offshore Tanzania in July, with the Ngisi-1 exploration well located in Block 4. The Ngisi well is the first to penetrate a reservoir section adjacent to the previously announced Pweza and Chewa discoveries in Block 4, opening up a new play in the tertiary formation of the northern block.

BG Group is in the process of selecting a site for an onshore LNG plant and said that process was progressing well.

The capacity of the terminal will be determined by further exploration and appraisal results across the company's three offshore blocks.

Dow Jones Newswires

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