{UAH} Tanzania now joins talks to resolve oil pipeline triangle and seeks route for its natural gas
|
11:33 AM |
No comments |
Tanzania has joined Kenya and Uganda in the search for a least cost option for a pipeline that will take crude oil from East Africa to export markets and allow its natural gas to be exported to neighbouring countries.
After fact-finding missions last week to the competing ports of Lamu, Mombasa and Tanga, technical teams went back to the drawing board to look for an optimum solution that also ensures the strategic interests of the three countries are accommodated.
Their findings are expected to form the basis of discussions first at a meeting between Tanzania and Kenya to be held in Nairobi on Tuesday, March 29, where Tanzania has been invited after it complained of having been left out of the talks led by President Uhuru Kenyatta and President Yoweri Museveni in Nairobi last Tuesday.
The findings will also inform discussions at a follow-up meeting between Uhuru and Museveni in a week's time in which Tanzania will also participate.
Variations of the rival lines – Hoima-Lokichar-Lamu and Hoima-Tanga -- are in consideration but the accommodation of a parallel line to enable Tanzania sell its natural gas to the rest of East Africa is the major addition to the previous proposals.
Tanzania has also poured cold water on the viability of the northern Kenya pipeline on the same grounds as Uganda, with its Minister for Energy and Minerals Sospeter Muhongo saying Tanga was closer to the Uganda oilfields than Lamu. He also said construction would be cheaper along the route because of the gentle terrain compared with the escarpments in Kenya.
Total has committed to supporting construction of a refinery at Hoima with $3.8 billion funding (to complement Uganda's 40 per cent contribution) and the Tanga pipeline. This consideration is expected to have a big influence on the decision Uganda makes because under the northern route, each country was to fund its own section.
"Uganda is having financing challenges. Lamu port has not been built and the entire Lapsset project is behind schedule. It is practically impossible for Kenya to complete construction of the port by 2018. The port of Tanga has already been built," the Uganda official said.
Brian M. Kwesiga
0 comments:
Post a Comment