Tanzania Gas Bounty Leads to New Regulations

The recent spate of discoveries off the coast of Tanzania has almost tripled the country’s natural gas reserves, taking them from 10 Tcf to 28.74 Tcf. The increase in reserves has led the government to consider new legislation for the gas industry.

Tanzania’s Energy and Minerals Minister Sospeter Muhongo said in a statement sent to Reuters, that it plans to introduce new legislation later this year.

"Deep-water offshore oil and gas exploration is a very expensive undertaking... It is important to ensure this gas and oil exploration momentum continues, and the government will give a bigger push for companies to proceed," Muhongo said in the statement.

The minister said the government was preparing rules for overseeing an energy sector "The Ministry of Energy and Minerals is in the final stages of drafting a policy, legislation and master plan on the use of natural gas in the country," he said.

"Our expectation is that once the gas policy is submitted, the legislation and master plan should be in place by October 2012."