Tanzania hires U.S. law firm to advise on $30 billion LNG plan

You can hire the best lawyers and the most outstanding consultants money can buy – if your project does not meet minimum standards of commerciality and legal regulatory realism, it won’t fly. Nobody spends 30 billion on a project that throws up such massive doubts. Tanzania seems to have the gas in the ground – fine. But having gas in the ground is worth almost nothing. if bringing it to market costs more than what the market is prepared to give you for it you have a dud. We call that stranded gas. Greedy, unrealistic expectations of a government won’t make the project any better.

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