Can Tanzania Be a Big LNG Exporter?
Energy export and production can be a source of political leverage for producers (America, Australia, Qatar) and a vulnerability for non-producing countries (the Baltic states) and developing energy producers (Nigeria, Equatorial Guinea). New energy entrants like Tanzania stand to benefit if resources are properly managed and invested. The recent discovery of over 46 trillion cubic feet (TCF) of offshore natural gas in Tanzania places the East African country as a significant competitor in the global Liquified Natural Gas (LNG) market. [1] Their proximity to the Asian LNG market heightens the expectation of this resource for power generation, regional supply, and intercontinental export. However, the political, legal, and security environment, along with the collapse in oil prices (to which most liquified gas exports are linked) and increased demand for cheaper and cleaner energy sources caused by COVID-19 all present challenges to Tanzania.
