Uganda, Tanzania sign gas pipeline deal
This development comes against the backdrop of Uganda’s efforts to kickstart oil mining.
Tanzania and Uganda have signed a gas pipeline deal that would see Uganda import tonnes of gas to boost its industrial capacity.
According to the Citizen, a Tanzanian newspaper, the pipeline will transport natural gas from the southern parts of Tanzania to Uganda, where it will be used to power factories and generate electricity.
The paper further reported that the agreement, which was signed on behalf of Uganda by energy minister Ruth Nankabirwa and Tanzania’s Deputy President Doto Biteko, will help boost energy security and economic growth for the two East African countries.
This development comes against the backdrop of Uganda’s efforts to kickstart oil mining.
Early this year, the country passed the Anti-Homosexuality Bill, 2023, and there were fears that the efforts to kickstart mining would stall given that most funding was to come from western financiers.
In September this year (2023), Uganda’s Ministry of Energy and Mineral Development revealed that Uganda was in final stages of talks with the China Export and Credit Insurance Corporation (Sinosure) and the Export-Import Bank of China (Eximbank) to fund the much-anticipated East African Community Oil Pipeline (EACOP).
The energy ministry’s permanent secretary, Irene Bateebe, while addressing the media, said that Sinosure and Eximbank are working together to provide funding for EACOP. She revealed that the Chinese financiers would lend Uganda up to $ 3 billion for EACOP to continue.
“We are at the tail end of the discussions with Chinese lenders] for financial close. We are confident that by the end of October of this year, we will close the debt component, and we will have mobilised most of the funding for the project,” Bateebe said.
The EACOP was also opposed by environmental activists who were backed by the European Union. These raised concerns that the safety of the environment as Uganda gears towards mining oil is not well taken care of. The Ugandan Government promised to look into this matter, but little is known whether anything was done.
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