Tanzania state-owned Petroleum Development Corporation has said it wants to build a pipeline to pump natural gas to neighbouring Uganda.
The pipeline which would start from Tanzania’s capital, Dar es Salaam, through Tanga Port on the Indian Ocean and to Mwanza, a port on Lake Victoria before crossing the border to Uganda, is seen as a major step in the two East African countries economic corporation.
According to the Petroleum Development Corporation, a contractor is to be hired to conduct a feasibility study to ascertain current and future natural gas demand “by identifying all potential customers.”
The study, the company added, would help to also establish the most economically viable route for the pipeline.
The latest development follows a 2016 agreement between the two countries to develop a crude oil export pipeline to help transport land-locked Uganda’s crude reserves from fields in the country’s west to offshore markets.
Tanzania which is known for its vast wilderness, has an estimated natural gas reserves of over 57 trillion cubic feet (tcf), mostly in offshore fields in the south of the country.