IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v81y2023ics0301420723000120.html
   My bibliography  Save this article

Strengths, weaknesses, and opportunities of local content policy, legal, and institutional framework in the upstream natural gas sector in Tanzania

Author

Listed:
  • Chuwa, Lazaro
  • Perfect-Mrema, Joseph

Abstract

Tanzania is expected to become a major exporter of liquefied natural gas (LNG) in the future, following the discovery of natural gas reserves totalling 57.25 trillion normal cubic feet (TCF). In Lindi, Tanzania, a proposal is being made to export two-train LNG, a US$ 30 billion liquefied natural gas (LNG) project. However, it's unclear whether the existing LCP will be enough to prevent Tanzania from following in the footsteps of other resource-rich African countries, such as Algeria, Egypt, Angola, the Democratic Republic of the Congo, and Somalia, which have all experienced resource-related wars, disputes, crises, and conflicts. Therefore, this paper critically assesses the strengths, weaknesses, and opportunities in the Tanzanian upstream natural gas sector's local content policy, legal, and institutional framework.

Suggested Citation

  • Chuwa, Lazaro & Perfect-Mrema, Joseph, 2023. "Strengths, weaknesses, and opportunities of local content policy, legal, and institutional framework in the upstream natural gas sector in Tanzania," Resources Policy, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000120
    DOI: 10.1016/j.resourpol.2023.103304
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420723000120
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2023.103304?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Institutions and the Resource Curse," Economic Journal, Royal Economic Society, vol. 116(508), pages 1-20, January.
    2. Alan R. Roe, 2016. "Tanzania-from mining to oil and gas," WIDER Working Paper Series 079, World Institute for Development Economic Research (UNU-WIDER).
    3. Snyder, Hannah, 2019. "Literature review as a research methodology: An overview and guidelines," Journal of Business Research, Elsevier, vol. 104(C), pages 333-339.
    4. Frankel, Jeffrey A., 2012. "The Natural Resource Curse: A Survey of Diagnoses and Some Prescriptions," Scholarly Articles 8694932, Harvard Kennedy School of Government.
    5. Halvor Mehlum & Karl Moene & Ragnar Torvik, 2006. "Cursed by Resources or Institutions?," The World Economy, Wiley Blackwell, vol. 29(8), pages 1117-1131, August.
    6. Poncian, Japhace & Jose, Jim, 2019. "Resource governance and community participation: Making hydrocarbon extraction work for Tanzania," Resources Policy, Elsevier, vol. 62(C), pages 84-93.
    7. Ragnar Torvik, 2009. "Why do some resource-abundant countries succeed while others do not?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(2), pages 241-256, Summer.
    8. Ovadia, Jesse Salah, 2016. "Local content policies and petro-development in Sub-Saharan Africa: A comparative analysis," Resources Policy, Elsevier, vol. 49(C), pages 20-30.
    9. Choumert Nkolo, J., 2018. "Developing a socially inclusive and sustainable natural gas sector in Tanzania," Energy Policy, Elsevier, vol. 118(C), pages 356-371.
    10. Adams, Dawda & Adams, Kweku & Ullah, Subhan & Ullah, Farid, 2019. "Globalisation, governance, accountability and the natural resource ‘curse’: Implications for socio-economic growth of oil-rich developing countries," Resources Policy, Elsevier, vol. 61(C), pages 128-140.
    11. Obadia Kyetuza Bishoge & Benatus Norbert Mvile, 2020. "The “resource curse” from the oil and natural gas sector: how can Tanzania avoid it in reality?," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(3), pages 389-404, October.
    12. Adedeji, Abdulkabir Niran & Sidique, Shaufique Fahmi & Rahman, Azmawani Abd & Law, Siong Hook, 2016. "The role of local content policy in local value creation in Nigeria's oil industry: A structural equation modeling (SEM) approach," Resources Policy, Elsevier, vol. 49(C), pages 61-73.
    13. Ngoasong, Michael Zisuh, 2014. "How international oil and gas companies respond to local content policies in petroleum-producing developing countries: A narrative enquiry," Energy Policy, Elsevier, vol. 73(C), pages 471-479.
    14. Iddi Mwanyoka & Will-Elimina Selestine & Said Nuhu, 2019. "EIA Practices in the Natural Gas Extraction Sector in Tanzania: Does Local Community Contribution Matter?," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-23, September.
    15. Dag Øivind Madsen, 2016. "SWOT Analysis: A Management Fashion Perspective," Post-Print hal-01306102, HAL.
    16. Cappelen, Alexander W. & Fjeldstad, Odd-Helge & Mmari, Donald & Sjursen, Ingrid Hoem & Tungodden, Bertil, 2021. "Understanding the resource curse: A large-scale experiment on corruption in Tanzania," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 129-157.
    17. Alan R. Roe, 2016. "Tanzania: From mining to oil and gas," WIDER Working Paper Series wp-2016-79, World Institute for Development Economic Research (UNU-WIDER).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nuhu, Said, 2023. "Natural gas extraction activities and host communities concerns in Sub-Saharan Africa: A reflection on the historical riots in Mtwara, Tanzania," Resources Policy, Elsevier, vol. 86(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kimiagari, Salman & Mahbobi, Mohammad & Toolsee, Tushika, 2023. "Attracting and retaining FDI: Africa gas and oil sector," Resources Policy, Elsevier, vol. 80(C).
    2. Boire, Sidiki & Nell, Kevin S., 2021. "The enclave hypothesis and Dutch disease effect: A critical appraisal of Mali's gold mining industry," Resources Policy, Elsevier, vol. 74(C).
    3. Poncian, Japhace & Jose, Jim, 2019. "National resource ownership and community engagement in Tanzania's natural gas governance," Energy Policy, Elsevier, vol. 133(C).
    4. Nuhu, Said, 2023. "Natural gas extraction activities and host communities concerns in Sub-Saharan Africa: A reflection on the historical riots in Mtwara, Tanzania," Resources Policy, Elsevier, vol. 86(PA).
    5. Ruba Aljarallah, 2021. "An Analysis of the Impact of Rents from Non-renewable Natural Resources and Changes in Human Capital on Institutional Quality: A Case Study of Kuwait," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 224-234.
    6. Simplice A. Asongu & Samba Diop & Ekene ThankGod Emeka & Amarachi O. Ogbonna, 2024. "The role of governance and infrastructure in moderating the effect of resource rents on economic growth," Working Papers 24/027, European Xtramile Centre of African Studies (EXCAS).
    7. Simplice A. Asongu & Nicholas M. Odhiambo, 2024. "Governance quality and trade performance in Sub‐Saharan Africa," World Affairs, John Wiley & Sons, vol. 187(1), pages 78-93, March.
    8. Asongu, Simplice & Odhiambo, Nicholas, 2022. "The paradox of governance and natural resource rents in Sub-Saharan Africa," MPRA Paper 119066, University Library of Munich, Germany.
    9. Dwumfour, Richard Adjei & Ntow-Gyamfi, Matthew, 2018. "Natural resources, financial development and institutional quality in Africa: Is there a resource curse?," Resources Policy, Elsevier, vol. 59(C), pages 411-426.
    10. Simplice A. Asongu & Samba Diop & Ekene ThankGod Emeka & Amarachi O. Ogbonna, 2024. "The role of governance and infrastructure in moderating the effect of resource rents on economic growth," Working Papers 24/027, European Xtramile Centre of African Studies (EXCAS).
    11. Guan, Jialin & Kirikkaleli, Dervis & Bibi, Ayesha & Zhang, Weike, 2020. "Natural resources rents nexus with financial development in the presence of globalization: Is the “resource curse” exist or myth?," Resources Policy, Elsevier, vol. 66(C).
    12. Muhamad, Goran M. & Heshmati, Almas & Khayyat, Nabaz T., 2021. "How to reduce the degree of dependency on natural resources?," Resources Policy, Elsevier, vol. 72(C).
    13. Mounir Amdaoud, 2019. "Ressources naturelles, innovation et développement économique : vers une nouvelle approche," CEPN Working Papers 2019-06, Centre d'Economie de l'Université de Paris Nord.
    14. repec:bny:wpaper:0105 is not listed on IDEAS
    15. Lebdioui, Amir, 2021. "The Multidimensional Indicator of Extractives-based Development (MINDEX): A new approach to measuring resource wealth and dependence," World Development, Elsevier, vol. 147(C).
    16. Yilanci, Veli & Aslan, Murat & Ozgur, Onder, 2021. "Disaggregated analysis of the curse of natural resources in most natural resource-abundant countries," Resources Policy, Elsevier, vol. 71(C).
    17. Waqar Wadho & Sadia Hussain, 2023. "Ethnic diversity, concentration of political power and the curse of natural resources," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(1), pages 113-137, April.
    18. Wei, Hua & Rizvi, Syed Kumail Abbas & Ahmad, Ferhana & Zhang, Yuchen, 2020. "Resource cursed or resource blessed? The role of investment and energy prices in G7 countries," Resources Policy, Elsevier, vol. 67(C).
    19. Dorinet, Elizavetta & Jouvet, Pierre-André & Wolfersberger, Julien, 2021. "Is the agricultural sector cursed too? Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 140(C).
    20. Tahar, Moez Ben & Slimane, Sarra Ben & Ali Houfi, Mohamed, 2021. "Commodity prices and economic growth in commodity-dependent countries: New evidence from nonlinear and asymmetric analysis," Resources Policy, Elsevier, vol. 72(C).
    21. Issabayev, Murat & Rizvanoghlu, Islam, 2019. "Optimal choice between local content requirement and fiscal policy in extractive industries: A theoretical analysis," Resources Policy, Elsevier, vol. 60(C), pages 1-8.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:81:y:2023:i:c:s0301420723000120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.