Policy & Regulation

Can Tanzania handle its gas riches?

Big gas finds in East Africa are putting existing government institutions under strain, especially in Tanzania where the medium term outlook for fiscal and regulatory policy is clouded with uncertainty Big gas finds in East Africa are putting existing government institutions under strain, especially in Tanzania where the medium term outlook for fiscal and regulatory policy is clouded with uncertainty.
By Peter Bofin 29 May 2012 0 9996
The amount of gas offshore Tanzania is causing problems for the government in Dar es Salaam. (PA)

Big gas finds in East Africa are putting existing government institutions under strain, especially in Tanzania where the medium term outlook for fiscal and regulatory policy is clouded with uncertainty.

The upcoming fourth licensing round for eight new deep-sea blocks has been postponed once already and may be postponed again. Tanzania Petroleum Development Co.’s (TPDC) future is unclear and new legislation governing the gas sector is being delayed.

The fourth licensing round, scheduled to launch in September, was originally slated for April 2011. It was cancelled to...