Market conditions will shape Tanzanian gas exports
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Significance Tanzania has high hopes for developing offshore gas reserves, but a combination of oversupply in global markets and a difficult domestic operating environment has lowered investors' interest. Prospects are better for the domestic gas market, but international power developers are cautious about dealing with President John Magufuli's government. Impacts Shortcomings in high-profile LNG developments will damage investor confidence in other large-scale investments. Faltering confidence could threaten financing for regional projects such as an oil pipeline from Uganda or a planned railway. Further delays in gas development carry greater consequences for Tanzania than Shell and Statoil, which can prioritise other projects.
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