The East African subsidiary of BG Group, an international exploration, production and LNG company have set its sights on processing gas into liquefied natural gas for the Tanzanian domestic market. BG East Africa and its partners will be investing billions of dollars in the country’s offshore gas resources over the next 5 years.

Derek Hudson President of BG East Africa said: “To date we have invested more than 1.5 billion US dollars, drilled 15 successful exploration and appraisal wells and identified total recoverable gas resources around 15 trillion cubic feet, enough to support a two-train LNG project.

The final decision as to whether to go ahead with the gas project will depend on the results of engineering, design and impact assessment, which according to Hudson is ‘making good progress’. The project will be rooted in the south of Tanzania.

“Onshore, we have a joint venture agreement with the partners in Block 2, Statoil and ExxonMobil, to progress initial engineering work and have a memorandum of understanding with the government of Tanzania setting out the process to acquire a site for a potential LNG facility.

“We are keen to make this new gas industry work for all of Tanzania. BG Group has a 60 per cent interest in, and is operator of, Blocks 1, 3 and 4 offshore Tanzania, with Ophir Energy holding 20 per cent and Pavilion Energy also holding 20 per cent” said the BG East Africa President.

The company also seeks to ensure that their work benefits the local community by creating jobs and providing educational scholarships to university students.