- President Uhuru Kenyatta and his Tanzanian counterpart Samia Suluhu announced at a press conference in Nairobi that the project would be part of a long-term plan to expand infrastructure between the two countries.
- President Suluhu said the respective government officials were instructed to start work on the project immediately.
- The two leaders did not provide a timetable, but the memorandum of understanding on cooperation in natural gas transport means that the energy ministries of the countries could start negotiating the design of the gas pipeline.
Kenya and Tanzania yesterday signed an agreement to build a liquefied natural gas (LNG) pipeline from Dar es Salaam to Mombasa that will be used for power generation and possibly for cooking and heating.
President Uhuru Kenyatta and his Tanzanian counterpart Samia Suluhu announced at a press conference in Nairobi that the project would be part of a long-term plan to expand infrastructure between the two countries.
President Suluhu said the respective government officials were instructed to start work on the project immediately.
“This is a long term project … we are grateful to have signed an agreement today … what remains is the implementation,” she said.
“We agreed on the need to facilitate the transport of major energy resources and reached such an agreement on gas transport. What we need to do now is start implementing the project.
The two leaders did not provide a timeline, but the memorandum of understanding on cooperation in natural gas transportation means that countries’ energy ministries could start negotiating design, cost and other logistical needs. of the pipeline.
“We have agreed on the means to harness Tanzania’s natural gas,” President Kenyatta said.
The LNG project comes a decade later after initial plans, which valued the pipeline at 63 billion shillings, failed to take off.
In 2011, Kenya announced plans to build a $ 500 million (Sh 53.8 billion) LNG terminal in the port city of Mombasa to diversify sources of electricity to meet growing demand.
A study by the East African Community at the time showed that a pipeline to transport natural gas from Dar es Salaam to the terminal would cost $ 630 (67.8 billion shillings).
Tanzania has so far discovered more than 57 trillion cubic feet of natural gas and is hiring international oil companies on the development terms for a $ 30 billion LNG project.
Tanzania has announced plans to export surplus electricity to energy-starved countries in East and Southern Africa once it increases its generation capacity.
Foreign oil and gas companies Equinor, alongside Royal Dutch Shell, Exxon Mobil and Ophir Energy and Pavilion Energy, plan to build the onshore LNG plant in the Lindi region.
International oil companies will develop the project in partnership with the Tanzania Petroleum Development Corporation, a state-owned company.