ORA: East Africa potential LNG market for investors

Stuart Carter, partner at Bond Dickinson, discusses the opportunities in investing in the East African LNG market as new gas discoveries in the region emerge to reshape the continent’s energy landscape

How much gas is there in East Africa?

Vast amounts. Mozambique alone is estimated to have gas reserves of up to 4.25 trillion cu/m and Tanzania potentially as much as 1.41 trillion cu/m (Petroleum-economist). But in a global economy where commodity prices, consumer demand and ‘timing to market’ are crucial, there is no guarantee that even these amounts can be commercialised in the foreseeable future. However, for both countries the prize is great. In an article written by Nadja Kogdenko - East Africa: The Newest LNG Frontier - the Mozambique Natural Gas Master Plan indicates that the country could potentially earn up to US$5.2bn per annum by 2026 from liquefied natural gas (LNG) exports, creating over 70,000 jobs in the gas sector. If fully monetised Tanzania could also expect a large inflow of revenue into its treasury.
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