NewsEast & Horn AfricaUganda's oil pipeline to go through Tanzania


Posted on Tuesday, 26 April 2016 11:11

Uganda's oil pipeline to go through Tanzania

By Janet Shoko

File Photo©Sean Proctor/AP/SIPAUganda says its oil pipeline will run through Tanzania to the Indian Ocean coast for exports. The decision was endorsed by East African leaders, who met in Uganda over the weekend.

Both Kenya and Tanzania had expressed interest in hosting the 1,400 km pipeline, expected to run from Uganda's oil fields in Hoima, its south western district.

Leaders of East African community (EAC) – Uganda, Kenya, Tanzania, Rwanda, Burundi and South Sudan were meeting to fast-track and implement major regional inter-connectivity infrastructure projects.

The projects include an oil pipeline, oil refinery, standard gauge railway (SGR) network, roads, ICT, air space management, power generation and transmission.

"I agreed with (Kenyan) President (Uhuru) Kenyatta that Uganda will construct her own pipeline from Hoima to Tanga. And that Kenya also build a separate pipeline from Lokichar to Lamu. There is no more paralysis on that matter," Ugandan President Yoweri Museveni announced.

Kenyan Lands minister, Jacob Kaimenyi confirmed the Uganda and Kenya pipelines would be developed independently. Both Uganda and Kenya have confirmed oil deposits.

Construction of the pipeline, according to Ugandan officials, will cost 14 trillion shillings ($4 billion) and will create 15,900 jobs.

The selection of a route is vital for oil firms to make final investment decisions on developing Ugandan and Kenyan reserves.

"While we have always believed that a joint Uganda export pipeline was the most cost effective option, we are clear that both Uganda and Kenya's oil resources can be developed separately," Tullow Uganda general manager, Jimmy Mugerwa said.

Tullow, Total and China's CNOOC have stakes in Uganda's nascent oil sector.

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