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.
TEXT SIZE - +
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

Wikipedia Proves Useful for Tracking Flu

Technique gave better results than Center for Disease Control (CDC) and Google’s Flu Trends More

Turkish Law Gives Spy Agency Controversial Powers

Parliament approves legislation to bolster powers of intelligence service, which government claims is necessary to modernize and deal with new threats Turkey faces More

Video Face of American Farmer Changing

Average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Face of American Farmer is Changingi
X
Mike Osborne
April 18, 2014
The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Face of American Farmer is Changing

The average American farmer is now 58 years old, and farmers 65 and older are the fastest growing segment of the population. It’s a troubling trend signaling big changes ahead for American agriculture as aging farmers retire. Reporter Mike Osborne says a new report from the U.S. Census Bureau is suggesting what some of those changes might look like... and why they might not be so troubling.
Video

Video Donetsk Governor: Ukraine Military Assault 'Delicate But Necessary'

Around a dozen state buildings in eastern Ukraine remain in the hands of pro-Russian protesters who are demanding a referendum on self-rule. The governor of the whole Donetsk region is among those forced out by the protesters. He spoke to VOA's Henry Ridgwell from his temporary new office in Donetsk city.
Video

Video Drones May Soon Send Data From High Seas

Drones are usually associated with unmanned flying vehicles, but autonomous watercraft are also becoming useful tools for jobs ranging from scientific exploration to law enforcement to searching for a missing airliner in the Indian Ocean. VOA’s George Putic reports on sea-faring drones.
Video

Video New Earth-Size Planet Found

Not too big, not too small. Not too hot, not too cold. A newly discovered planet looks just right for life as we know it, according to an international group of astronomers. VOA’s Steve Baragona has more.
Video

Video Copts in Diaspora Worry About Future in Egypt

Around 10 percent of Egypt’s population belong to the Coptic faith, making them the largest Christian minority in the Middle East. But they have become targets of violence since the revolution three years ago. With elections scheduled for May and the struggle between the Egyptian military and Islamists continuing, many Copts abroad are deeply worried about the future of their ancient church. VOA religion correspondent Jerome Socolovsky visited a Coptic church outside Washington DC.
Video

Video Critics Say Venezuelan Protests Test Limits of Military's Support

During the two months of deadly anti-government protests that have rocked the oil-rich nation of Venezuela, President Nicolas Maduro has accused the opposition of trying to initiate a coup. Though a small number of military officers have been arrested for allegedly plotting against the government, VOA’s Brian Padden reports the leadership of the armed forces continues to support the president, at least for now.
Video

Video More Millenials Unplug to Embrace Board Games

A big new trend in the U.S. toy industry has more consumers switching off their high-tech gadgets to play with classic toys, like board games. This is especially true among the so-called millenial generation - those born in the 1980's and 90's. Elizabeth Lee has more from an unusual café in Los Angeles, where the new trend is popular and business is booming.
Video

Video Google Buys Drone Company

In its latest purchase of high-tech companies, Google has acquired a manufacturer of solar-powered drones that can stay in the air almost indefinitely, relaying broadband Internet connection to remote areas. It is seen as yet another step in the U.S. based Web giant’s bid to bring Internet to the whole world. VOA’s George Putic reports.
AppleAndroid

World Currencies

EUR
USD
0.7217
JPY
USD
102.17
GBP
USD
0.5949
CAD
USD
1.1009
INR
USD
60.326

Rates may not be current.