According to Dr Nakhle, there will continue to be a high gas demand for at least the next two decades, because gas-fired power can be used to balance out the intermittency of renewable energy. Tanzania’s main concern should therefore not be about gas demand, but how it will attract sufficient capital at a time when global competition for increasingly scarce capital is intensifying.
Every producer is competing with all other producers. The one that secures the market is the one that can deliver gas profitably at given prices. So far, Mozambique has been more competitive than Tanzania and this is why it has advanced its LNG projects faster than its East African neighbour.
“Tanzania’s LNG plans“, Dr Carole Nakhle, May 2021
“A New Dawn for Tanzania and FDI“, Dr Carole Nakhle, May 2021
“What Are The Economic Implications of the Energy Transition on Africa’s Oil and Gas Producers?“, Dr Carole Nakhle, May 2020