East Africa Gas – The Potential for Export

In the world of upstream oil and gas, the emergence of a major new prospective area always creates a frisson of excitement.  Once the discoveries are assessed and we move past the initial question of how the potential resource base was previously overlooked, attention focuses on the likely ultimate scale of the resource, the cost of development, the likely timing of first production, and the impact of the new supplies on regional and global gas markets.

David Ledesma’s paper on the prospects for gas in Mozambique and Tanzania captures the excitement of the confirmation of a major new hydrocarbon play and conveys the pace at which resources were mobilised and the sheer scale of the discoveries made over a very short time period.  The resources, however, are owned by two relatively poor countries with limited institutional capability and capacity. They face the challenge of making decisions on fiscal and regulatory issues which will impact their economies for several decades. Key policy issues include how to ensure that gas  is available for the domestic market in parallel with the build up of the export flows necessary for viable development and how to avoid the ‘resource curse’ of currency appreciation, which would harm other domestic industrial sectors.

This paper is a timely description and analysis of the emergence of this major new source of gas supply which is already hailed as a future competitor for Australian and US LNG supplies to Asian markets.  For researchers and observers of the natural gas market it provides a comprehensive picture of a gas supply region whose prominence will surely grow throughout the next decade.

By: David Ledesma

Latest Tweets from @OxfordEnergy

  • An OIES study (Saudi Arabia: Shifting the Goal Posts) cited in a new article in The Economist on OPEC long-term all… https://t.co/K1iuNCK1b4

    February 23rd

  • Heightened Geopolitical Risks in the Middle East and Potential Impacts on Oil Markets https://t.co/ur8Q0PxXit

    February 22nd

  • A new OIES paper on evolution of Japanese oil industry: Considering that demand for refined petroleum products will… https://t.co/jwajCfNQI4

    February 20th

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.