By MIKAEL HOLTER
Statoil and BG Group will build Tanzanias 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 energy minister Sospeter
The two companies will announce the site decision next week,
Muhongo said in an interview in Oslo. Statoil declined to
comment, spokesman Knut Rostad said by phone.
Statoil, which has discovered as much as 20 trillion cubic
feet of natural gas
in Block 2, and BG,
which says recoverable volumes are as much as 15 trillion
cubic feet in three neighboring blocks, plan to build an LNG
plant to export gas to Asia,
profiting from rising demand in the region.
Statoil, Norways biggest energy company, is targeting
another 5 to 15 trillion cubic feet as it plans as many as a
dozen wells off Tanzania over the next two years, head of exploration
Tim Dodson said last
Production could start in 2021 or 2022 and investments could
be $20 billion to $30 billion, Statoil has said. Partners in
the offshore blocks include ExxonMobil,, Ophir Energy and
Tanzanias government hopes Statoil and BG, which
operate their respective blocks, will decide to build the
plant with at least two trains, Muhongo said.
Tanzania, which has the largest gas reserves in east Africa
after Mozambique with 46.5 trillion cubic feet, expects that
figure to exceed 100 trillion cubic feet within the next two
to three years, Muhongo said.
Bidders in the countrys licensing round started last
year will be announced May 15, Muhongo said, adding he
suspects Statoil to be among them.