Uganda and Tanzania Sign Gas Deal

Posted on :Monday , 27th August 2018

Uganda and Tanzania have signed an agreement for the construction of a natural gas pipeline.

The deal was signed at the end of a three-day Joint Permanent Commission Summit held in Kampala, led by Uganda's Minister for Energy Irene Muloni and Tanzania's Foreign Minister Augustine Mahiga.

The summit was preceded by a series of meetings that involved permanent secretaries and other senior officials.

The deal was a culmination of work that began during the first Tanzania-Uganda meeting held in April last year in Arusha, in which the two agreed on a number of memoranda and co-operation frameworks.

The plan for the pipeline came just 15 months after Kampala and Dar es Salaam agreed in May 2017, to construct a crude oil pipeline from Hoima in Uganda to Chongoleani in Tanga.

The project led by French oil multinational Total which led the project as the main contractor was launched in Tanga by Presidents Yoweri Museveni of Uganda and John Magufuli of Tanzania.

This will be the first trans-border gas pipeline in East Africa since the extraction of natural gas commenced in 2004 at the Songosongo Island in Tanzania's southern region of Lindi.

Tanzania Petroleum Development Corporation set August 24, 2018, as the deadline for submission of tender documents for the consultancy services for feasibility studies.

Kapuulya Musomba, TPDC managing director said that he was confident the pipeline construction would be successful given the expertise and experience gained through the construction and servicing of two pipelines -- the 532km Mtwara-Dar es Salaam one and the crude oil pipeline that is underway.

He said that apart from carrying natural gas to Uganda, the pipeline will distribute the product along the route.

"About 10 to 15 Tanzania regions will benefit from the pipeline that will also serve as a catalyst for oil and gas exploration," Mr. Musomba said.

Tanzania has a confirmed natural gas recoverable reserve of 57.5 trillion cubic feet.

The gas to be transmitted is meant for power generation for industrial and domestic use. Majority Tanzania's power generation depends on natural gas plants generate 684.66MW, those using diesel 125.429MW and hydro 561.843MW.

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