Tanzania plans new LNG export facility

LNG29 November 2013, Dar es Salaam – Plans are underway by Tanzania to build a massive facility to export liquefied natural gas (LNG) and may locate it in Lindi. The size of the facility, according to the Ministry of Energy and Minerals, would be similar to those developed by the world’s biggest gas exporter, Qatar.

The MEM’s Deputy Minister, Mr George Simbachawene, said government is looking at building the facility by 2020 and is zeroing it on Lindi, though cost details of the project haven’t yet been worked out.

“We are thinking of building one industrial area, like what you have in Qatar, where you have all these (LNG) plants, petrochemical industries,” Mr Simbachawene said at the sidelines of the Africa-Asia Oil and Gas Summit in Singapore on Wednesday.

The minister’s comments come amid an ongoing review of proposals submitted by international oil companies to locate a gas plant in Lindi. Tanzania is estimated to have more than 40 trillion cubic feet (TCF) of gas, which it said could rise five-fold over the next five years, putting it on par with some Middle East producers. It also plans to start gas exports to its energy-starved east African neighbours in 2015.

East Africa has become one of the world’s hottest new oil and gas areas after a string of discoveries, which producers hope to exploit to feed energy-hungry Asia. Many top companies such as BG Group, Exxon Mobil and Statoil are at work in Tanzania to tap its gas reserves.

The country, which has in place 26 production-sharing agreements with several overseas companies, released a policy document in October called “Natural Gas Policy of Tanzania 2013”, listing the government’s objectives for the gas industry, including regulating mid- and downstream activities, gas processing and liquefaction to storage and distribution.

– Tanzania Daily News

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