Tanzania Announces Plans For Uganda Gas Pipeline
Tanzania announced plans on Wednesday to build a pipeline to supply neighbouring country Uganda with natural gas.
The two countries have been working on plans for ambitious trade deals to capitalise on the vast oil deposits and natural gas reserves discovered over recent years in the East African region.
Countries lining up to trade with Tanzania
Much like Uganda has experienced with its oil deposits, East African nations have been queuing up to trade with Tanzania as its natural gas supply continues to grow. Tanzania announced in February it had discovered an additional 2.17 trillion cubic feet of possible natural gas deposits, taking the nation’s total to more than 57 trillion.
The new gas discoveries are expected to save Tanzania $1 billion per year, establishing the country’s place as the second largest economy in East Africa, behind Kenya.
Tanzania strengthens ties with Uganda
If the gas pipeline to Uganda materialises it will mark a dramatic strengthening of bilateral ties between Tanzania and its regional neighbour. The two nations have already agreed to establish an oil pipeline running through Tanzania to export oil from the landlocked Uganda to Tanga port.
That deal had looked to have been agreed between Kenya and Uganda until Tanzania emerged as a late contender and ultimately won the deal. Key investors in the project lost confidence in the route proposed by Kenya for the pipeline project.
By Iain Cameron, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=30779126