Oil pipeline works start in July
Jan 28, 2007
THE construction of the oil pipeline from Eldoret, Kenya to Kampala will start in July and be completed by August 2008.
By Mikaili Sseppuya
and Peter Kaujju
THE construction of the oil pipeline from Eldoret, Kenya to Kampala will start in July and be completed by August 2008.
The Permanent Secretary in the energy ministry, Kabagambe Kaliisa, said this during the signing of the contract by TAMOIL East Africa and energy officials from Kenya and Uganda at Speke Resort, Munyonyo on Saturday.
Tamoil, a Libyan oil company, will hold the 20-year concession on a build, own, operate and transfer basis.
Tamoil has extensive interests in oil in East Africa and Europe, and owns three refineries.
Kaliisa said the benefits of the project would include reduction in the cost and time of delivering fuel to the country by 40% to 50%, minimize accidents caused by fuel tanks and save on road maintenance costs due to the diversion of fuel traffic away from the roads
The 340km pipeline will have a terminal in Kampala with a storage capacity of 72 million litres, he said.
Energy minister Daudi Migereko explained that it would be possible in future to reverse the pumps so that fuel flows from Uganda to Kenya when the country starts exporting oil.
Kalisa said Tamoil will construct the pipeline at US$78.2m (sh139. 2b).
and Peter Kaujju
THE construction of the oil pipeline from Eldoret, Kenya to Kampala will start in July and be completed by August 2008.
The Permanent Secretary in the energy ministry, Kabagambe Kaliisa, said this during the signing of the contract by TAMOIL East Africa and energy officials from Kenya and Uganda at Speke Resort, Munyonyo on Saturday.
Tamoil, a Libyan oil company, will hold the 20-year concession on a build, own, operate and transfer basis.
Tamoil has extensive interests in oil in East Africa and Europe, and owns three refineries.
Kaliisa said the benefits of the project would include reduction in the cost and time of delivering fuel to the country by 40% to 50%, minimize accidents caused by fuel tanks and save on road maintenance costs due to the diversion of fuel traffic away from the roads
The 340km pipeline will have a terminal in Kampala with a storage capacity of 72 million litres, he said.
Energy minister Daudi Migereko explained that it would be possible in future to reverse the pumps so that fuel flows from Uganda to Kenya when the country starts exporting oil.
Kalisa said Tamoil will construct the pipeline at US$78.2m (sh139. 2b).