NEWS

Tanzania and Uganda sign agreement to build a gas pipeline

Published

6 month ago

13 November 2023

SOW

La Tanzanie et l'Ouganda signent un accord pour la construction d'un gazoduc

In August 2018, Uganda and Tanzania signed a memorandum of understanding to coordinate work between the two states on a feasibility study to assess crucial elements of the pipeline project such as design, gas demand, pipeline size and others.

A bilateral agreement for the construction of a gas pipeline was signed on behalf of Tanzania by the country's Deputy Prime Minister, Doto Biteko, and on behalf of Uganda by the country's Minister of Energy and Mining Development, Ruth Nankabirwa, said Biteko.

The pipeline will transport natural gas from the southern regions of Tanzania to Uganda.

Speaking at the signing ceremony, Mr. Biteko stressed that the project will increase demand for natural gas in Tanzania, as well as gas production in the country's Lindi and Mtwara regions. The Deputy Prime Minister also pointed out that Kenya, Zambia, Malawi, Rwanda, Burundi and Botswana are among the countries interested in Tanzanian natural gas.

He also called for investment in the country's energy sector, adding that Tanzanian gas processing amounts to over 7 million cubic meters per day, of which 20% is used to meet industrial, domestic and transport needs, while 80% is used to generate electricity.

"Tanzania produces and uses around 250 million standard cubic feet [over 7 million cubic meters] of natural gas per day, of which 80% is used to generate electricity, and the remaining 20% is used for industry, households and the transport sector. [...] Our main challenge now remains infrastructure development [...]. This challenge is what motivates us to invest more and to call on investors around the world to join hands to develop the oil and gas sector here in Tanzania", noted the Deputy Prime Minister.

Biteko also pointed out that some 1.63 trillion cubic meters of natural gas have been discovered in the country, and that other sites in the country, including Eyasi Wembere, Mnazi Bay North, Songosongo West, Lake Tanganyika, and the deep waters are being explored for new sources.

He also urged the Joint Implementation Committee to "work tirelessly" to implement the project on time.

"I plead for the Joint Committee [...] to work tirelessly, for the discourse to be practical. We want you to work tirelessly so that the procurement entity, the consultant, gets them on time so that we can conduct the feasibility study on time. "said Biteko.

Commenting on the agreement, Nankabirwa said on its social networks that the agreement demonstrates Uganda's commitment to boosting the country's energy sector and promoting regional cooperation in this field.

"The government continues to work on the implementation and advancement of the project, aiming for a sustainable and prosperous future for Uganda and Tanzania," reads the minister's message on X, formerly known as Twitter.

In August 2018, a memorandum of understanding on the project was signed by the two East African states.

Another important Ugandan-Tanzanian energy initiative is a 1,440-kilometer pipeline called the East African Crude Oil Pipeline Project (EACOP), which will transport oil from the Lake Albert oil fields in Uganda to the Tanzanian Indian Ocean port of Tanga, where it will be sold on world markets.