TANZANIA-UGANDA PIPELINE WORKS TO START IN AUGUST

Posted on :Monday , 14th March 2016

Construction of the long-awaited Tanzania-Uganda crude oil pipeline is expected to start in August this year, and will be completed in 2019.

James Mataragio, Tanzania Petroleum Development Corporation (TPDC) Executive Director said last week the $4 billion project will speed up the socioeconomic development between the two East African nations.

Sources say theTanzanian and Ugandan Presidents approved the project ahead of the just concluded 17th EAC Summit in Arusha.

The 1,403-kilometre pipeline will link oil fields in Uganda’s Lake Albert, Hoima region from the Tanga port in Tanzania. According to the TPDC official, the construction of the crude oil pipeline will be carried out by three oil firms, namely: UK’s Tullow Oil PLC, France’s Total E&P and China’s Cnooc.

Mataragio was optimistic that the project would start and complete within the time-frame. Once completed, the oil pipeline will be able to transport up to 200,000 barrels per day passing through a number of Tanzanian regions from the Indian Ocean port of Tanga to Uganda.

“It is anticipated that over 200,000 tonnes of bare pipes, materials and equipments such as pipe insulation, pump, bulk heating and trace heating stations will be imported through Tanga port,” he said.

The pipeline construction is expected to create more than 15,000 jobs.

He said the crude oil pipeline project will also increase the Foreign Direct Investment (FDI) to Tanzania by more than 50% per annum.

He said the construction will lead to installations of 200km of permanent new rads and corresponding bridges, and upgrades to 150km of existing roads.

The project will also open up regional integration in the energy sub-sector in which Uganda is expected to import natural gas from Tanzania.

Umurenge SACCOs played a significant role in pushing out the boundaries of formal financial access for farmers, farm workers and individuals who earn an income from piece-work than for individuals earning an income through formal employment.

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