Daily News: Tanzania: Beware of Super Profit Expectations in Gas Exploration

Reports from the Tanzania Petroleum Development Corporation (TPDC) show that gas deposits have now reached 50.4 trillion cubic feet (tcf), increasing anxiety among the population which now thinks Tanzania is on the way to becoming another 'Dubai'.

Experts term this as 'extremely high expectations of super earnings and no wonder the Parliamentary Public Accounts Committee (PAC) was so adamant that it set its eyes on the 26 PSAs that have been signed between the Government through the TPDC and the exploration companies.

Ask anyone on the prospects and the answer would be trillions of dollars in super earnings. However, according to oil and gas experts, the expected high earnings could remain a dream because of a number of factors including more gas discoveries being made elsewhere around the globe which could lower prices due to stiff competition.

These include discoveries in other countries of the region such as Mozambique which has proven reserves of gas amounting to 150 million tcf, discoveries from other continents discoveries from unconventional sources such as shale gas. Shale gas in the United States is rapidly increasing as an available source of natural gas.
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