News / Economy

Uganda Agrees to Plan for Oil Pipeline to New Kenya Port

Three East African presidents, (from R) Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda and Paul Kagame of Rwanda, hold a joint news conference soon after their meeting in Entebbe, 36km (22 miles) southwest of the capital Kampala, June 25, 2013.
Three East African presidents, (from R) Uhuru Kenyatta of Kenya, Yoweri Museveni of Uganda and Paul Kagame of Rwanda, hold a joint news conference soon after their meeting in Entebbe, 36km (22 miles) southwest of the capital Kampala, June 25, 2013.
Reuters
Uganda has agreed to a plan to build a pipeline from its oilfields to a new port being developed on Kenya's northern coast, Uganda's foreign minister said on Tuesday, enabling crude exports and boosting its oil industry.
 
The pipeline to Kenya's Lamu port, where work on berths is starting, would also provide a route to export crude oil from South Sudan, which now relies on a pipeline through its northern neighbor Sudan. Rows between the two have disrupted flows.
 
Uganda, Kenya and other East African states want to capitalize on a string of oil and gas finds across the region that could make the area a major energy exporter. But production has been delayed, partly due to questions of export routes.
 
Another project agreed by the presidents of Uganda, Kenya and Rwanda, who all met in the Ugandan capital, will involve extending to Uganda and Rwanda an existing pipeline running from Kenya's Mombasa port that now stops inside Kenya.
 
“It was agreed that we develop two oil pipelines - one pipeline that currently exists and brings products from Mombasa to Eldoret [in Kenya] should be extended to Kampala and Rwanda,” Ugandan Foreign Minister Sam Kutesa told a news conference after the summit between Uganda's Yoweri Museveni, Kenya's Uhuru Kenyatta and Rwanda's Paul Kagame.
 
He did not provide figures for the date or the cost of completing the projects.
 
South Sudan previously put the price of a pipeline to Lamu at $3 billion.
 
Extending the Mombasa-to-Eldoret produce pipeline to Uganda was previously estimated to cost $300 million.
 
The product pipeline will be upgraded to allow the flow both ways, the minister said. For now, oil products only flow from Mombasa. Uganda, which plans to start crude output by 2016, aims to build a 30,000 barrel per day refinery by 2016/17.
 
“Another pipeline will be constructed and will be for evacuation of crude oil when it starts flowing, and this again will be done between Uganda, South Sudan and Kenya, ending up at the port of Lamu,” the minister said.
 
That project could boost plans for Lamu, which Kenya wants to act as an oil terminal and a port with transport links to landlocked South Sudan and Ethiopia. It would also relieve pressure on Mombasa port, the main regional gateway.
 
South Sudan, which now exports crude through Sudan to the Red Sea, previously discussed a pipeline through Kenya as well as a route through Ethiopia to Djibouti.
 
Kenya has already awarded a contract to a Chinese firm to build the first three berths at Lamu.
 
Uganda, Kenya and Rwanda also agreed to revamp an existing railway network and extend it to Rwanda and discussed power cooperation, the minister said, adding the three states would meet every two months to review progress on all joint projects.

You May Like

In China, Mixed Signals on Ebola Controls

How authorities are monitoring at-risk individuals remains unclear, including whether there are quarantines for Chinese health workers returning from West Africa More

Video Women Voters Anxious Ahead of US Elections

Analysts say if women are focused on national security, it could be bad news for Democrats More

Solar's Future Looks Brighter

New technology and dropping prices are contributing to a surge in solar power More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Women Voters Anxious Ahead of US Electionsi
X
October 31, 2014 4:10 AM
Public opinion polls show American voters are deeply dissatisfied with their government and anxious about threats from abroad. This is especially true for a key voting group both Republicans and Democrats are trying hard to win over: women. Analysts say if women are focused on national security, it could be bad news for Democrats, with majority control of the Senate at stake. VOA’s Cindy Saine looks at the crucial role women voters will play in deciding the elections.
Video

Video Women Voters Anxious Ahead of US Elections

Public opinion polls show American voters are deeply dissatisfied with their government and anxious about threats from abroad. This is especially true for a key voting group both Republicans and Democrats are trying hard to win over: women. Analysts say if women are focused on national security, it could be bad news for Democrats, with majority control of the Senate at stake. VOA’s Cindy Saine looks at the crucial role women voters will play in deciding the elections.
Video

Video Victorious Secularists Face Challenge to Form Government in Tunisia

Official results from Tunisia show the Islamist Ennahda party has failed to win the second free election since the so-called "Arab Spring" uprising in 2011. Ennahda, which handed power to a government of technocrats pending the elections, lost out to the secular party Nidaa Tounes. Henry Ridgwell reports from London that the relatively peaceful poll offers some hope in a volatile region.
Video

Video Africa Tells its Story Through Fashion

In Africa, Fashion Week is a riot of colors, shapes, patterns and fabrics - against the backdrop of its ongoing struggle between nature and its fast-growing urban edge. How do these ideas translate into needle and thread? VOA’s Anita Powell visited this year’s Mercedes Benz Fashion Week Africa in Johannesburg to find out.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.

All About America

AppleAndroid

World Currencies

EUR
USD
0.7893
JPY
USD
107.68
GBP
USD
0.6238
CAD
USD
1.1214
INR
USD
61.185

Rates may not be current.