AT ministerial level, Uganda has chosen Tanga Port in Tanzania as the suitable route to export its crude oil from Hoima given approving scientific reasons put forward by technical teams in Kampala, Tanzania’s Minister of Energy and Minerals, Prof Sospeter Muhongo, confirmed yesterday.
In a related development, the Uganda’s Permanent Secretary in the Ministry of Foreign Affairs, Ambassador James Mugume, was quoted in a state-owned newspaper confirming that the final decision will be made during the Heads of State summit slated for this weekend in Kampala.
“As far as Energy Ministers from Uganda and Tanzania are concerned, the Tanga Port is the ideal route and this has been reinforced by technical arguments by technocrats from Uganda. The decision was made basing on facts and figures.
“We (the ministers) have signed recommendations advanced by the technical teams in favour of Tanga Port, the next step is to inform respective Heads of State for further action,” Prof Muhongo told the ‘Daily News’ in a telephone interview from Kampala.
The envisaged pipeline through Tanzania, according to Prof Muhongo, will be of benefit not only to Uganda and Tanzania but others countries in the region such as Kenya, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo (DRC). “It will be cheaper and easier for these countries to use the pipeline compared to any other port in the East Africa Region.
The Tanzanian route is cost-effective, reliable and secure,” Prof Muhongo remarked, matter-of-factly. He added: “We are now waiting for our host (the Ugandan government) to make a formal announcement. We hope President (Yoweri Museveni) will be making the decision.”
Prof Muhongo stressed that the decision by Ugandan technocrats to endorse the Tanga Port in Tanzania was solely based on technical grounds rather than politics or friendship that the two countries enjoy. Kenya has been competing with Tanzania to have the pipeline pass through its oil-rich region in Turkana to be constructed in Lamu Port in North Eastern Kenya.
If all goes as planned, construction of the planned US $4 billion dollars (about 8trl/-) pipeline from Kabale in Uganda to Tanga port in Tanzania will commence by August this year, pending ongoing discussions between the two governments and investors. The 24-inch conduit to cover 1,403 kilometres is expected to convey 200,000 barrels of crude oil per day for exports.
President Joseph Magufuli of Tanzania and Yoweri Museveni of Uganda discussed the ambitious project prior to the 17th Ordinary East African Community (EAC) Heads of State Summit in Arusha, early this year.
The governments of Tanzania and Uganda signed a Memorandum of Understanding (MoU) for implementation of the venture in October, last year. The project is envisaged to create 15,000 jobs during its execution after which upon completion it will employ about between 1,000 and 2,000 people. It will pass through Kagera, Shinyanga, Tabora and Singida to Tanga.
Uganda has so far discovered 6.5 billion barrels of the precious liquid along the Lake Albert basin. The first finding was made by Hardman Resources in 2006 which was later acquired by Tullow Oil.
At present, three companies own 33.3 per cent each of the oil fields and they include Total E&P, Tullow Oil and CNOOC.
The companies plan to construct an oil refinery to process 60,000 barrels per day to cater for a demand of petroleum products in East Africa while between 200,000 and 600,000 barrels will be transported in crude form through the pipelines for exports outside the EAC.
