29 companies line up for gas pipeline contract

In Summary

  • At least 29 multinationals have shown interest in conducting a feasibility study and ultimately, constructing a pipeline that will pump natural gas from Tanzania to Uganda as the latter seeks to the product (natural gas) for power generation (electricity) and heating in the iron and steel manufacturing industries.
By Alfred Zacharia @azacharia3
[email protected]

Dar es Salaam.

At least 29 multinational companies have shown interest in conducting a feasibility study and constructing a pipeline that will pump natural gas from Tanzania to Uganda.

TPDC acting managing director Mr Kapuulya Musomba told The Citizen during the second Oil and Gas Congress yesterday that the winner will be hired to conduct a feasibility study to determine current and future natural gas demand and the cost of the project.

Tanzania and Uganda have already signed a Memorandum of Understanding (MoU) that will see the former pumping natural gas to the latter, according to Deputy Minister for Energy Ms Subira Mgalu.

The pipeline would start from Dar es Salaam and pass through Tanga port on the Indian Ocean and to Mwanza, a port on Lake Victoria before crossing the border to Uganda according to TPDC. However, Uganda proposes to use the corridor of Hoima-Tanga where a crude oil pipeline from Uganda to Tanzania will pass.

Speaking to The Citizen at the Congress, Minister of State for Minerals in Uganda, Mr Peter Lokeris, said the natural gas will be supplied in western Uganda areas where iron ore was discovered.

According to him, natural gas will be used for power generation (electricity) and heating in the iron and steel manufacturing industries.

“After conducting thorough researches, we (Government of Uganda) realized that natural gas will be the cheapest source compared to other suggested energy options,” he said.

Tanzania boasts estimated recoverable natural gas reserves of over 57 trillion cubic feet (tcf).

He requested the multinational investors who attended the congress to put their money into the project.