(3 Minutes Read)
Uganda and Tanzania have taken a significant step forward in the realization of a planned cross-border gas pipeline, following the selection of a consultant to undertake a comprehensive feasibility study for the project. This marks a key milestone in the long-anticipated venture, more than a year after Uganda’s government issued a call for expressions of interest from potential bidders.
Currently, Uganda’s Solicitor General is in the process of reviewing the necessary documentation to approve the awarding of the contract to the chosen consultant. A final decision is expected within the coming weeks, which would enable the feasibility study to commence before the end of the current quarter.
The proposed pipeline forms part of a larger strategic framework aimed at strengthening oil and gas infrastructure between the two East African nations. Notably, this includes the ongoing construction of the 1,443-kilometre East African Crude Oil Pipeline (EACOP), designed to transport Uganda’s crude oil to the Tanzanian port of Tanga. While previous discussions also considered Tanzania taking an equity stake in Uganda’s planned oil refinery, progress on that front has since slowed, although officials have confirmed the idea remains under consideration.
Initially, the gas pipeline was intended to follow the same route as the crude oil pipeline to streamline development along existing infrastructure corridors. However, this approach raised issues related to land acquisition and potential compensation disputes, prompting the governments to reconsider. A new alignment has since been agreed upon, and the upcoming feasibility study will further refine this route. The revised path is expected to run closer to densely populated areas, which could offer local communities access to natural gas for both domestic and industrial applications.
Read Also:
https://trendsnafrica.com/bob-wine-opposes-uganda-tanzania-gas-pipeline/
Despite the growing cooperation between Uganda and Tanzania, the project faces a challenging global financial climate. Increasingly, major banks and investment institutions are reluctant to fund fossil fuel initiatives due to heightened environmental concerns. These financing constraints could pose a significant barrier to the project’s implementation, even if the feasibility study supports its technical viability. The latest developments reflect sustained political will and strategic intent by both countries to expand regional energy infrastructure, diversify energy sources, and enhance energy security across East Africa.
