- Uganda and Tanzania have issued calls for tenders for qualified engineering consulting companies.
- The feasibility study will cost $1.5m (Shs5.6b), subject to the outcomes of the bidding process.
Uganda and Tanzania have issued calls for tenders for qualified engineering consulting companies to undertake a feasibility study on the proposed Liquefied Natural Gas (LNG) pipeline.
The two governments signed a feasibility study agreement for the project in November last year, paving the way for the next phase. The study will cover, among others, technical aspects of the passageway, economic, social, and environmental risk assessments, and the gas market landscape in both countries.
The study will also inform the capital expenditure for the pipeline to transport gas from Tanzania’s LNG greenfield project, which has deposits estimated at 57.5 trillion cubic feet.
A consortium of companies, including Pavilion Energy, Equinor, ExxonMobil, and Ophir Energy, was said to be in the lead in developing the project.
The feasibility study will cost $1.5m (Shs5.6b), subject to the outcomes of the bidding process. Uganda’s High Commissioner to Tanzania, Col (Rtd) Fred Mwesigye, said discussions are ongoing simultaneously to develop both gas and finished products pipelines between Uganda and Tanzania.“All these will stimulate interactions between Uganda and Tanzania,”
Ambassador Mwesigye said on the sidelines of last week’s ninth oil and gas conference at Serena, Uganda and Tanzania are already developing the $4b (Shs15 trillion) East African Crude Oil Pipeline (EACOP). This is to transport Uganda’s waxy crude oil from the oil fields in Hoima to Tanga port where loading onto containers en route to the international market will be done.