GAIL wants LNG from Tanzania

Vol 17, PW 10 (19 Dec 13) News in Brief
     

GAIL is trying to source 2m t/y long-term LNG from Ophir Energy’s gasfields in Tanzania after losing an opportunity to ‘farm-in’ to the fields in November.

In October this year BG Group and London-listed Ophir announced they had made a proposal to Tanzania's ministry of energy and minerals to construct a 10m t/y LNG terminal in the Lindi region, expected to be commissioned by 2020 at an estimated cost of $15bn. “Talks are on with Ophir to buy its share of gas,” confirms a GAIL source.

“We're looking forward to (Tanzanian government) approval for the LNG export facility." BG (60% and operator) shares offshore Tanzanian blocks 1, 3 and 4 with Ophir (40%).

Ophir announced on November 14 that it had agreed to farm out 20% in the three blocks for $1.3bn (Rs8050cr) to Pavilion Energy, owned by the Government of Singapore's investment arm Temasek. Ophir estimates the blocks hold a total 15-tcf of recoverable reserves.

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