Kenya-Uganda oil pipeline project to kick off in May

Mar 04, 2008

CONSTRUCTION of the Kenya-Uganda oil pipeline extension is to start in May, the energy minister has said. Daudi Migereko said the project contractor was acquiring land and compensating land-owners.

By Ibrahim Kasita

CONSTRUCTION of the Kenya-Uganda oil pipeline extension is to start in May, the energy minister has said. Daudi Migereko said the project contractor was acquiring land and compensating land-owners.

Tamoil East Africa, a Libyan company, won the tender to install an 8-inch diameter, 320km pipeline from Eldoret to Kampala, with an annual capacity of about 1.2m cubic metres.

The pipeline will transport refined oil products into Uganda and neighbouring countries.

“Preliminary works on the oil pipeline from Eldoret-Jinja-Kampala are moving well,” the minister said while meeting managers of oil companies.

Migereko said the Government was fast-tracking the issue of storage facilities in Jinja and west of Kampala.

“There is a need for the oil companies to put up their own storage facilities that will last for a maximum of 10 days to avoid future fuel shortage. Expand your storage facilities,” he advised.

“Because of the developments within the region, it is time for oil companies to stock products according to regulations. We are also expanding the Jinja depot to double its capacity.”

“The crisis in Kenya has forced us to focus on producing oil. We don’t want the same situation to happen again,” Migereko said.

The oil companies requested the Government to consider attracting private investors to build an oil terminal in Tororo.

“Once we are guaranteed connectivity to the pipeline, we shall build the terminal before the pipeline,” Ivan Kyayonka, the Shell country manager, said.

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