Tanzania to build a new gas pipeline to Uganda

Tanzania wants to construct a natural gas transmission pipeline route from the country’s most populous city Dar es salaam to Uganda, as the countries continue to strengthen their energy ties. The two countries had in 2016 agreed to build a crude oil export pipeline to help land-locked Uganda move its crude reserves to offshore markets.

State-owned oil company Tanzania Petroleum Development Corporation (TPDC) said on Monday that the new pipeline will pass through Tanga port, Mwanza and Kagera.

The company said it was looking to hire a contractor that will, in 30 weeks, conduct a “market survey along the proposed pipeline route, to establish the current and future natural gas demand by identifying all potential customers covering all natural gas market segments including (power generation and industries)”.

Tanzania, which holds most of East Africa’s gas resources, has an estimated recoverable natural gas reserves of over 57 trillion cubic feet (tcf). The country is working to leverage this to drive industrialisation and economic development in the country, as well as the region. In April, President John Magufuli commissioned the $344 million Kinyerezi II power plant, injecting an additional 167.82 MW into the national grid. Tanzania is also set to become the first exporter of natural gas in East Africa.

The country will showcase opportunities for investment in its Oil and Gas sector to international stakeholders who will attend the second Tanzania Oil and Gas Congress, set to take place in Dar es Salaam from September 24 to 25, as it continues to seek profitable partnerships to grow the sector.