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  • on 13.10.2015
  • at 05:02 PM
  • by evelina

Tanzania, Uganda sign Tanga oil pipeline agreement 0

Tanzania and Uganda have signed an agreement that paves the way for studies to explore the possibility of building a pipeline to the Tanzanian port of Tanga.

Uganda has been looking at various options of developing the crude oil export pipeline, which include Hoima-Lacor-Lamu Port, Hoima-Nairobi-Mombasa, and now Hoima-Tanga.

Dr Fred Kabagambe-Kaliisa, Permanent Secretary of Uganda’s Ministry of Energy and Mineral Development, said the deal will help the parties to appraise the merits of a crude export pipeline option through Tanzania with a view to achieving the lowest unit transportation cost for crude oil from Uganda.

“If we get the least cost pipeline to Tanga, then our crude oil will be exported cheaply. We need to carry out due diligence, which requires technical work, to inform our citizens about the end-user tariffs and the memorandum of understanding sets the stage for carrying out detailed evaluation,” Dr Kabagambe-Kaliisa said.

The parties seek to identify and assess the least cost crude oil export pipeline from Hoima to the Tanga Port.

Continue reading on The East African

By Allan Olingo, The EastAfrican

Photo credit:  Photo File AFP

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