Uganda’s President Yoweri Museveni has signed an agreement with Tanzania to implement the construction of a natural gas pipeline project between the two countries.
In a statement, Infrastructure Uganda said the deal will allow the two countries implement the construction of the pipeline from the southern regions of Tanzania to Uganda.
Tanzania Deputy Prime Minister Doto Biteko and Uganda Minister of Energy and Mineral Development, Ruth Nankabirwa sealed the agreement on Thursday, November 9 on behalf of the two countries.
Speaking during the deal signing ceremony, Nankabirwa said Uganda acknowledged the importance of the project and will commit to ensure it succeeds.
Besides, she revealed that the two countries have a history of collaborating on energy projects.
On the other hand, Biteko said the deal is based on a Memorandum of Understanding (MoU) signed by Uganda and Tanzania in 2018.
He also urged investors to invest in the natural sector adding that Kenya and Botswana have also expressed interest in Tanzania’s natural gas.
Further, the gas will be used to generate electricity and power factories in Uganda.
Additionally, the project is expected to create employment opportunities and attract foreign investors.
Uganda’s Application to Kenya
However, the Uganda- Tanzania deal comes two months after Kenya rejected a similar offer from President Yoweri Museveni.
According to reports, Uganda requested to use Kenya Pipeline Company to transit fuel from Mombasa to Western Kenya as part of its exclusive fuel supply agreement with Vitol Bahrain in September.
However, the application by Uganda National Oil Company was reportedly turned down by the Kenyan government because it did not meet the requirements.
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Also, the Kenyan government expressed concerns that the move will displace local oil marketing companies (OMCs) from using its pipeline.
Following the rejection of its application to use KPC facilities, Nankabiriwa led a delegation from the Uganda Energy Ministry to meet with Tanzania President Samia Suluhu over a similar deal.
Why Uganda Ditchen Kenyan Fuel – Museveni
On Sunday, November 5, Uganda’s president Yoweri Museveni explained the reasons behind the cancellation of the petroleum sourcing deal with Kenya.
Museveni revealed that Ugandans were getting fuel from middlemen in Kenya who were selling the petroleum products at a very high price.
As a result, this led to an increase in fuel prices in the country.
Additionally, Museveni blamed the Uganda civil servants arguing that the move to purchase petroleum products from middlemen in Kenya was done without his knowledge.
Also Read: Museveni Ditches Kenya as Ruto’s Deal Increases Fuel Prices in Uganda
In addition, Museveni noted that he came to the realization of the situation about a year ago but when he delegated the issue to a lawmaker, it was never dealt with.
“Without my knowledge, our wonderful People, were buying this huge quantity of petroleum products from middlemen in Kenya. A whole country buying from middlemen in Kenya or anywhere else!!” he stated.
“Why not buy from the Refineries abroad and transport through Kenya and Tanzania, cutting out the cost created by middlemen? Those involved were not bothered by these issues,” Museveni added.
At the same time, the head of state noted that he had reached out to President William Ruto concerning the issue adding that his government had made the decision to get petroleum from bulk suppliers.
