New legislation could cripple Tanzanian LNG

Laws that allow contracts to be renegotiated and ban arbitration in international courts could kill off the prospects for LNG projects in Tanzania
By Leigh Elston 6 July 2017
The Discoverer Americas drillship off Tanzania. (Paul Joynson-Hicks/AP/Staoil)

Two new laws in Tanzania give the government sweeping control over the country’s natural resources – including the power to renegotiate contracts in favour of the state at any time, a move that could seriously affect LNG projects in the country. 

President John Magufuli has said that the legislation will bring greater transparency to the extractive industries and lead to fairer distribution of the country’s resource wealth. However, the uncertainty they create – and the fact that they forbid the arbitration of disputes in international courts...

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