Tanzania, Uganda Signed Agreement to Assess Feasibility of Gas Pipeline

SEATTLE (Oil Monster): Tanzania and Uganda have entered into an agreement to carry out a feasibility study towards construction of a gas pipeline that connects Gas fields in Tanzania to Uganda.

The agreement is further to the Memorandum of Understanding (MoU) signed between the two countries earlier in 2018. It must be noted that Tanzania has been reporting significant gas discoveries both in the deep sea as well as land. The country has reportedly made natural gas discoveries amounting to nearly 57.54trcf.

Commenting on the development, Tanzania Deputy Prime Minister and Energy Minister Doto Biteko noted that the joint effort will evaluate the project and prepare a guide detailing the feasibility of the project. The government has been in efforts to boost natural gas production by exploring additional deep water locations in Eyasi Wembere, Songosongo West and Lake Tanganyika. The exploration and development projects are being carried out in collaboration with the Tanzania Petroleum Development Corporation.

Meantime, Ugandan Energy Minister Ruth Nankabirwa urged financial institutions to offer low-cost credit to fund the project. 

Simultaneously, Tanzania is also seeking cabinet approval for a $42 billion LNG project, which will provide tremendous boost to its overall natural gas output.

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