(Ecofin Agency) - Last weekend, Tanzania and Uganda agreed to build a gas pipeline which will start from the Tanzanian oil production fields to some high gas consumption areas in Uganda. This will be the first transborder pipeline to be built since natural gas extraction started in 2004 on the Songo Songo Island in South Tanzania.

According to The East African which reported the information, the agreement was met at the end of a 3-day summit which gathered many officials from the two countries, in Kampala, and was led by Tanzania’s minister of foreign affairs and Uganda’s energy minister. This summit was preceded by a series of meetings attended by high officials of the energy sector.

Let’s remind that this agreement is reached fifteen months after the two countries decided to build an oil pipeline in Hoima, Uganda, and in Tanga, Tanzania to export the Ugandan future oil production internationally.

The gas exported to Uganda thanks to the gas pipeline will let it supply its thermal power plants to meet the ever increasing domestic fuel’s need.

Kapuulya Musomba, managing director of the Tanzanian public oil company explained that he was confident the construction would be successful given the expertise and experience gained in the construction and maintenance of Mtwara-Dar es Salaam pipeline. “ It will also serve as a catalyst for oil and gas exploration”, he added.  

For the time being, there is no indication on the funding sources.

Olivier de Souza