EPRA has encouraged research-driven collaboration among African countries to strengthen energy security and resilience. UGANDA’S move to develop a crude oil pipeline with Tanzania and the latest refinery plans are more complementary than rivalry, President Yoweri Museveni’s government now says.
This, as it affirms its commitment to regional integration and development of projects that “create lasting value” for its citizens. Speaking in Nairobi during the Annual Research and Innovation Conference by the Energy and Petroleum Regulatory Authority (EPRA), Uganda’s Energy and Mineral Development Minister Ruth Ssentamu said Uganda expects its first oil this year.
She noted that Kenya was not ready for a pipeline at the time Uganda was keen to invest, but recent developments including acquisition of a 20.15 per cent stake in Kenya Pipeline, shows the country is ready for cross-border investments. “This demonstrates the scale of cross-border cooperation, infrastructure planning and investment coordination, which is required to unlock Africa's petroleum resources in a structured and economically viable way,” Ssentamu said.
In 2016, Uganda ditched Kenya and opeted for Tanzania for the East African Crude Oil Pipeline (EACOP) project. The 1,443km pipeline project is designed to transport crude oil from Lake Albert to the Port of Tanga. Key reasons for Uganda at the time included better security, lower costs, easier land acquisition and the immediate availability of the Tanga port compared to the under-construction Lamu port in Kenya.
The neighbouring country and a key trading partner to Kenya also plans to build an oil refinery. Dubai-based investment firm Alpha MBM Investments LLC and Uganda National Oil Company (UNOC) have signed a key agreement on the $4billion (Sh516.5 billion) project which is now advancing towards a Final Investment Decision, expected by July this year after more than a decade of delays.
The refinery, planned for the Albertine Graben, is designed to process up to 60,000 barrels of crude oil per day once completed, with Uganda keen to cut its $2 billion (Sh258 billion) annual petroleum products import bill mainly imported through Kenya.