Tanzania to Construct a Crude Oil Pipeline in 2021

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Tanzania’s Minister of Energy Dr. Medard Kalemani has announced the construction of a major crude oil pipeline from Hoima in Uganda to Tanga in Tanzania. The construction of the pipeline will begin in April 2021.

The pipeline will be 1,445Km long and will cost $3.5 billion. Speaking at Tanzania’s National Assembly last week Dr. Kalemani said that an environmental audit has been completed and communities close to the pipeline will be compensated.

The Minister said the project is still waiting for a final investment decision and the priority now is to complete the host government agreements (HGA), a shareholders’ agreement (SHA), a land lease agreement (LLA) and a port agreement (PA).

“The priorities during the incoming financial year is to complete these agreements and compensation of affected people,” he noted.

The East African Crude Oil Pipeline was scheduled to begin in January 2017 and be completed in 2020, but was delayed due to disagreements on the provisions of the HGA, SHA and transportation tariffs.

The project is said to be an important source of revenue generation, job creation and increasing fuel availability in areas the pipeline passes.