Uganda Explores Tanzania Pipeline to Diversify Fuel Import and Export Routes

Uganda has entered advanced discussions with Tanzania to develop a pipeline for transporting refined petroleum products, a move aimed at strengthening regional energy security and reducing dependence on existing fuel import corridors.

The proposed pipeline was a key outcome of bilateral talks held in Dar es Salaam on Saturday between Ugandan President Yoweri Museveni and Tanzanian President Samia Suluhu Hassan. 

During the meeting, the two leaders agreed to accelerate plans for energy infrastructure projects linking Uganda to Tanzania’s port of Tanga.

In a statement shared on social media platform X, President Museveni said the discussions focused on expanding cooperation in energy, trade, infrastructure, and regional stability. 

He noted that both countries reviewed progress on the East African Crude Oil Pipeline (EACOP) and explored additional pipeline projects for gas and refined petroleum products.

According to Ugandan officials, the proposed pipeline would provide Uganda with an alternative route for importing refined fuel while also enabling future exports once the country’s planned refinery becomes operational. 

Uganda is currently developing a $4 billion oil refinery, but officials acknowledge that refined fuel imports will still be required during the construction phase.

Feasibility studies for the refined products pipeline are nearing completion, with implementation expected to begin within six months, subject to regulatory and financial approvals.

The new infrastructure is expected to complement the 1,443-kilometre EACOP, which will transport crude oil from Uganda’s Lake Albert oilfields to Tanzania’s coastline for export. 

Unlike EACOP, which carries crude oil, the proposed refined products pipeline is designed to operate as a two-way system.

Under the arrangement, Uganda would initially import refined petroleum products from Tanzania through Tanga. 

Once domestic refining capacity is established, the flow would reverse, allowing Uganda to export surplus refined fuels via the same route.

Currently, Uganda relies heavily on Kenya for fuel imports, with about 90 per cent of its refined petroleum products transported through the Kenya Pipeline Company (KPC). 

Uganda is KPC’s largest single market, accounting for an estimated 35 per cent of its annual revenue and nearly all of its foreign exchange earnings.

Fuel imported through the port of Mombasa is transported via KPC infrastructure to Eldoret before being moved by road into Uganda, a system that has long been considered efficient but increasingly vulnerable to policy and cost changes.

Concerns have grown following Kenya’s announcement that it plans to partially privatise KPC through an Initial Public Offering (IPO). 

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