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Uganda, Kenya revive plans for petroleum pipeline
What you need to know:
- The project, revived after a meeting between the two presidents, aims to reduce price volatility and ensure secure fuel supplies in Uganda and beyond.
Uganda and Kenya have reignited a 30-year-old plan to build a petroleum pipeline from Eldoret to Kampala, aiming to secure stable fuel supplies and reduce price volatility.
Uganda's Minister of Energy and Mineral Development, Ms Ruth Nankabirwa, and other officials have been meeting their counterparts in Kenya for new talks on the extension of the pipeline to the border.
The proposal to build the pipeline was conceived in 1995 as part of the resolutions of the Joint Co-ordinating Commission (JCC) and a Memorandum of Understanding was signed between the two countries.
A feasibility study was done and a report was submitted in 1999 but the project went into limbo.
"The meetings in Nairobi are for planning purposes, building on the interaction between Presidents Yoweri Museveni and William Ruto in May," Ms Nankabirwa said.
Under the plan, Kenya would build the line up to the border, while Uganda takes it on to Kampala, with the bigger plans involving an extension to Rwanda and Burundi.
"This plan will help us fend off the threat of Tanzania's ports and ensure more stable and secure petroleum supplies," Nankabirwa added.
About 90 per cent of Uganda's fuel imports come through Kenya and if this plan matures, it will go a long way in fending off the threat of Tanzania's ports of Dar-es-Salaam and Tanga.
Uganda imports 2.5 billion liters of refined petroleum products annually, worth $2.5 billion (Shs9.3 trillion). The pipeline will reduce reliance on marketing companies in Kenya, partly blamed for high fuel prices in Uganda.
The project, revived after a meeting between the two presidents, aims to reduce price volatility and ensure secure fuel supplies in Uganda and beyond.
"The pipeline will extend to Kigali in Rwanda and possibly Bujumbura in Burundi, with each country responsible for infrastructure development within its borders," Nankabirwa explained.
This move comes after Uganda started direct fuel imports from the Middle East, cutting out Kenyan marketing companies.
The pipeline plan is a significant step towards achieving energy security and stability in the region, according to Ms Nankabirwa.
