A legal framework for gas development: How can host governments strike a balance between investment and competition?
Article from: OGEL Archive issue , in National and International Issues in Natural Gas Development
Introduction
Host governments in countries with undeveloped gas resources face the challenge of attracting initial investment for needed infrastructure, yet in the longer term not granting a degree of exclusivity for the initial investor so as to create monopoly conditions.
The challenge is particularly acute for emerging economies since potential investors are often wary of perceived political and economic risks where large capital expenditures for production, transmission, and possibly power generation, are made with time horizons of twenty years or more.