Compromise will be key to Tanzania’s gas ambitions

Significance

There is fresh enthusiasm for the project from President Samia Suluhu Hassan’s new administration, but project economics mean a deal will remain difficult to finalise.

Impacts

• The government has accorded high priority to this project, suggesting it may be willing to offer the necessary compromises to make it work.
• Lower-than-projected domestic supply of gas could hasten power sector reform and create more opportunities in renewables.
• Regulatory authorities, which were weakened under the previous administration, will be strained by the demands of energy sector reform.