An oil pipeline. Uganda is looking for an appropriate route to the international market when oil production begins. PHOTO | FILE | AFP
Oil companies in Uganda are in discussions with Tanzania for an alternative pipeline route through Tanga despite a recent agreement between Presidents Yoweri Museveni and Uhuru Kenyatta.
The EastAfrican has learnt that besides security concerns, the companies are also uncomfortable with the cost of the Lamu route, arguing that the southern route through Tanzania would be cheaper and offer better commercial terms to the users.
President Kikwete supported the proposal as it fits within Tanzania’s ongoing preparatory works to upgrade Tanga port’s capacity to off load petroleum products.