An interesting piece emerged over the weekend following recent
rumoured discussion of a Tanzania Uganda gas pipeline. This coming only months after an agreement
was reached to build one to carry Oil.
With Ruvuma offering so much promise as preparations for the CH1 drill
and pipeline spur to connect to Mdimba plant are underway and Aminex competitors
supplying at maximum compacity, I am highly encouraged by this
announcement. The Gas must come from
somewhere and Aminex currently look to be in the driving seat as the only supplier likely
to be in position to do so. Add to that,
that Tanzania’s own domestic demand is projected to outstrip supply during 2019
Tanzania and Uganda have signed an agreement for the
construction a natural gas pipeline.
The multimillion dollar deal was signed at the end of a
three-day Joint Permanent Commission Summit held in Kampala, led by Tanzania's
Foreign Minister Augustine Mahiga and Uganda's Minister for Energy Irene
Muloni.
The summit was preceded by a series of meetings that
involved permanent secretaries and other senior officials.
The deal was a culmination of work that began during the
first Tanzania-Uganda meeting held in April last year in Arusha, in which the
two agreed on a number of memoranda and co-operation frameworks.
The pipeline comes just 15 months after Dar es Salaam and
Kampala agreed in May 2017, to construct a crude oil pipeline from Hoima in
Uganda, to Chongoleani in Tanga.
The project led by French oil multinational Total as the
main contactor was launched in Tanga by Presidents John Magufuli of Tanzania
and Yoweri Museveni of Uganda.
This will be the first trans-border gas pipeline in East
Africa since the extraction of natural gas commenced in 2004 at the Songosongo
Island in Tanzania's southern region of Lindi.
Tanzania Petroleum Development Corporation set August 24,
2018, as the deadline for submission of tender documents for the consultancy
services for feasibility studies.
TPDC managing director Kapuulya Musomba told The EastAfrican
that he was confident the pipeline construction would be successful given the
expertise and experience gained through the construction and servicing of two
pipelines -- the 532km Mtwara-Dar es Salaam one and the crude oil pipeline that
is underway.
He said that apart from carrying natural gas to Uganda, the
pipeline will distribute the product along the route.
"About 10 to 15 Tanzania regions will benefit from the
pipeline that will also serve as a catalyst for oil and gas exploration,"
Mr Musomba said.
Tanzania has a confirmed natural gas recoverable reserve of
57.5 trillion cubic feet.
Mr Musomba, however, did not reveal the source force funding
for the project.
The gas to be transmitted is meant for power generation for
industrial and domestic use. A half of Tanzania's power generation depends on
natural gas plants generate 684.66MW, those using diesel 125.429MW and hydro
561.843MW.
Uganda plans to set up a mega project to extract iron ore, a
key raw material for the production of iron and steel.
During his visit to Tanzania on August 9, 2018, President
Museveni underscored the need for improving production of iron, which is
required for infrastructure projects, such as the standard gauge railways in
Kenya and Tanzania.
Article Source: allAfrica