Recently, significant reserves of natural gas have been indentified in Mozambique and Tanzania. These resources represent a significant energy resource for the economic development of the region, and may support a pathway to both economic growth and a low-carbon future. We assume
apriori that the gas resources will be used primarily in urban areas or in power or fertilizer plants or industry close to the principal urban centers. The aim of our study is to investigate how the potential future demand for natural gas across sectors and countries might impact the economic viability of an investment in a new regional transmission and distribution gas network in Eastern and Southern Africa. We analyse the economic viability by using future demand and pricing data inferred for biomass, charcoal, and liquid fuels currently being used in the continent. Results suggest that the development of such a regional gas pipeline network within the continent is an attractive investment (based on internal regional demand as well as co-benefits to economy, environment and health) that can complement LNG export, which is the dominant market option being considered to enable the large upstream investments.
