Transports

Kenya enters into oil pipeline deal with Ethiopia

Friday, 24 June 2016 11:16

Kenya has entered into an agreement with Ethiopia to build a crude oil pipeline from the coastal town of Lamu to Addis Ababa.This is coming months after Uganda decided to export her oil through Tanzania.

The Kenyan President, Uhuru Kenyatta (photo, right) made the deal with the Ethiopian Prime Minister Hailemariam Desalegn (photo, left) as part of a combined infrastructure projects to incorporate the region under the Lamu Port-Southern Sudan -Ethiopia Transport (Lapsset) corridor.

Ethiopia is interested in gas production and exportation starting from 2017 after discoveries.

The two leaders witnessed the signing of bilateral agreements including a pact on the oil pipeline that will run from Lamu to Addis Ababa under the Lapsset project,” the State House said.

According to Ministry of Energy and Petroleum, Kenya is expected to start building the $2.1 billion crude oil pipeline and complete it in 2021, the East African news reports.

Anita Fatunji

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