Tanzania and Mozambique are currently competing for investments to develop their existing gas fields. However, Tanzania’s chances are at risk since Mozambique has thrice the amount of natural gas resources and is directly competing with the same investors, The Citizen reported.
Tanzania has about 54tcf of natural gas in Ruvuma basin in the southeast regions of Lindi, Mtwara and parts of Coast Region. On the other hand, Mozambique has 160tcf in the same Ruvuma basin.
Although investors historically favored Mozambique, it seems that Tanzania is becoming a more tempting gas investment opportunity.
According to All Africa ,not only is state owned Mozambique Asset Management set to default on $535m in loans, which it took out to create shipyards to tune-up natural gas drilling off of its coast. Furthermore, Fitch Ratings has reduced the country’s sovereign credit rating to CCC, a ranking that denotes a very real risk of default and will likely disappoint many investors.