7 August 2018

Africa: East Africa's Gas Pipeline Plans Steadily Progress

TANZANIA'S plans to export gas to Uganda are advancing towards fruition as the government moves ahead with construction plans of a natural gas transmission pipeline from Dar es Salaam to Uganda via Tanga and Kagera regions.

Tanzania Petroleum Development Corporation (TPDC) Managing Director Kapuulya Musomba told the 'Daily News' East African Edition in an interview that they were now looking for a consultant to conduct a feasibility study for construction of the pipeline.

"Yes, the plans are going on and we're looking for consultant for a feasibility study of the project," he said noting that some important issues in the study include an overall cost of the project, gas demands along the route, compensation requirements and capacity of the pipeline.

Tanzania boasts estimated recoverable natural gas reserves of over 57 trillion cubic feet (tcf), mostly in offshore fields in the south of the country.

The gas pipeline is expected to provide Uganda with natural gas for their steel industries from iron ore deposits in the south western region are among the highest quality iron ores in the world.

The planned gas transmission pipeline will deepen commercial ties between the two countries which are jointly constructing a crude oil export pipeline to help transport land-locked Uganda's crude reserves from fields in the country's west to international markets.

The 1,445 km pipeline from Hoima oil fields in Uganda to the Tanga port is expected to be the longest electrically heated crude oil pipeline in the world will cost the two countries US$ 3.55 billion.

According to TPDC tender notice, the consultant will undertake a market survey along the proposed pipeline route to establish the current and future natural gas demands by identifying all potential customers covering all natural gas segments.

The consultant will also propose the route for the natural gas transmission pipeline which will be economical to adopt and that will have minimal compensation and property, facilities and resettlements.

He or she will propose an optimal route from Dar es Salaam to Tanga via either Bagamoyo or Chalinze based on potential natural gas demand.

The consultant will also determine the optimum transmission pipeline capacity requirement and other design parameters required for the construction of the high pressure natural gas transmission pipeline.

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