Recently, Tanzania and Uganda got to sign a bilateral agreement to build Tanzania-Uganda Gas Pipeline that is foreseen to boost energy security and grow the economy of both of the countries. This pipeline is expected to transport the natural gas from the southern region of Tanzania to the neighboring country of Uganda where it shall be utilized to generate power for the factories and generate electric power. This project is anticipated to generate quite a number of jobs and also attract foreign investments to both of the countries.
The agreement that was reached was signed by the minister in charge of energy in Tanzania, Doto Biteko, and the minister in charge of energy and mineral development, Ruth Nankabirwa. According to a statement that was made during the signing ceremony by Biteko, stated that this Tanzania-Uganda Gas Pipeline is set to increase the demand of natural gas and boost extraction of gas in Mtwara and Lindi regions of Tanzania. Moreover, the states of Kenya and Botswana have also expressed their interests in the natural gas of Tanzania.
The minister of energy of Tanzania urged the investors to come and invest in the sector of natural gas in Tanzania. Currently the gas processing of the country has reached a total of 250 million cubic in a single day. 80% of the gas is utilized in production of electricity and 20% of the electricity is utilized in industrial purposes, utilized in homes and also used for transportation purposes.
Tanzania-Uganda Gas Pipeline Agreement Signing
According to Biteko, the Tanzania-Uganda Gas Pipeline agreement that was signed by the two countries in the month of August during the year 2018, outlined that the two countries would work together on the feasibility studies in order to carry out assessment of the design of the project, the demand of gas, the overall size of the pipeline, and also other crucial factors of the project.
According to Nkabirwa the two neighboring countries have recently collaborated on major energy projects inclusive of the 14MW Kikagati hydropower project, the project of Masaka Mutukula to Mwanza power transmission, and lastly the East African Crude Oil Pipeline Project (EACOP).
The Tanzania-Uganda Gas Pipeline project is a key milestone in the efforts of integration of the East Africa energy. This project is anticipated to boost the energy security in the region and boost the economy in both Tanzania and Uganda by the creation of jobs and attraction of foreign investment.
