Natural gas in Africa amid a low-carbon energy transition: a case study of Mozambique and Tanzania

The document warns that Mozambique and Tanzania face significant risks of stranded gas infrastructure due to declining global markets, prices, and investor capital. It argues that both export-focused LNG projects and domestic gas-led industrialisation strategies are economically vulnerable, noting that using gas for power and industry is likely to remain an expensive option.

• Future global climate action creates a risk that new gas infrastructure in Mozambique and Tanzania will become stranded assets. This is driven by falling gas prices and markets, alongside reduced capital availability and higher hurdle rates demanded by investors for fossil-fuel projects.
• The economic resilience of LNG projects in Mozambique and Tanzania is threatened if domestic gas-led industrialisation is pursued using assets that require high export prices to remain viable.
• Utilising gas as a fuel source for industrial and power sectors is expected to be a costly option, regardless of whether it conflicts with export goals.

APA

African Climate Foundation (2024). Natural gas in Africa amid a low-carbon energy transition: a case study of Mozambique and Tanzania. https://africanclimatefoundation.org/research-article/natural-gas-in-africa-amid-a-low-carbon-energy-transition-a-case-study-of-mozambique-and-tanzania/

Chicago

African Climate Foundation. Natural gas in Africa amid a low-carbon energy transition: a case study of Mozambique and Tanzania. 2024. https://africanclimatefoundation.org/research-article/natural-gas-in-africa-amid-a-low-carbon-energy-transition-a-case-study-of-mozambique-and-tanzania/.

Wikipedia

{{cite report |author=African Climate Foundation |title=Natural gas in Africa amid a low-carbon energy transition: a case study of Mozambique and Tanzania |date=7 March 2024 |url=https://africanclimatefoundation.org/research-article/natural-gas-in-africa-amid-a-low-carbon-energy-transition-a-case-study-of-mozambique-and-tanzania/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanclimatefoundation2024natural, author = {{African Climate Foundation}}, title = {{Natural gas in Africa amid a low-carbon energy transition: a case study of Mozambique and Tanzania}}, institution = {African Climate Foundation}, year = {2024}, month = mar, url = {https://africanclimatefoundation.org/research-article/natural-gas-in-africa-amid-a-low-carbon-energy-transition-a-case-study-of-mozambique-and-tanzania/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }