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Tanzania positioned as LNG hub, BG Group says

Positive results seen from offshore appraisal well.
By Daniel J. Graeber   |   Aug. 27, 2014 at 9:09 AM   |   Comments

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LONDON, Aug. 27 (UPI) -- Following positive results from an appraisal well off the coast of Tanzania, energy company BG Group said the country is in a good position for LNG development.

BG Group said a test from an appraisal well at the Mzia discovery off the coast of Tanzania yielded a sustained gas flow rate of 101 million cubic feet per day. A similar well last year flowed at 57 million cubic feet per day.

BG Group Chief Operating Officer Sami Iskandre said the results are a "critical factor as we progress design of the upstream production facilities and infrastructure" tied to liquefied natural gas development.

Last year, energy consultant group Wood Mackenzie published a report saying Tanzania was a part of a growing number of emerging producers in East Africa. The report said output from Tanzania could help regional production increase from the current rate of 500,000 barrels of oil equivalent per day to 1.5 million barrels of oil equivalent.

BG Group said test results from offshore developments "provided further support for a hub development to supply a potential onshore LNG project" in Tanzania.

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