By Ebi Kesiena
Uganda and Tanzania have officially entered into an agreement to initiate a feasibility study for the construction of a gas pipeline.
The pipeline is intended to link Tanzania’s expansive deepwater gas fields to Kampala, according to statements made by the energy ministers of both nations on Friday.
Tanzania is presently awaiting cabinet approval for a substantial $42 billion liquefied natural gas (LNG) project designed to harness its significant 57.5 trillion cubic feet of natural gas reserves.
In May, Tanzania’s energy ministry finalized an agreement with Equinor (EQNR.OL), Shell (SHEL.L), and Exxon Mobil (XOM.N) for the development of an LNG export terminal, marking a noteworthy advancement following years of delays, as reported by Reuters.
During a signing ceremony in Dodoma, Tanzania’s Deputy Prime Minister and Energy minister, Doto Biteko, emphasized the urgency, stating, “Time is running, we are behind time, let us make it happen.”
While, Ugandan Energy Minister Ruth Nankabirwa has called on financial institutions to provide affordable credit to support the funding of the project.
Collaborating with TotalEnergies from France and CNOOC from China, Uganda and Tanzania are jointly involved in a 1,445-kilometer-long pipeline project. This initiative aims to facilitate the transportation of crude oil from Uganda’s oilfields to global markets through a port on Tanzania’s Indian Ocean coast.
Speaking on the development, President Yoweri Museveni of Uganda has expressed the country’s interest in utilizing the same pipeline corridor to transport affordable natural gas from Tanzania.
However, the President did not provide a specific timeline for the construction, stating, “This gas will not be affordable if we use expensive money.”
Uganda has replaced Kenya with Tanzania for its oil imports, potentially resulting in Kenya forfeiting $100 million in annual earnings from managing Uganda’s petroleum and related products, as earlier reported by Business Insider Africa.
