Ugandan pipeline re-route
Uganda is considering its route-to-market options for the construction of an oil pipeline from oilfields in the Lake Albert basin to the East African coastline. Until recently, Kenya was convinced that it had secured the pipeline deal through to Lamu port, which would form an integral part of its northern corridor development plans. However, Tanzania has entered the fray and put forward an attractive option to route the pipeline to its northern port of Tanga. Negotiations over the proposed route are creating tension within the East African Community, owing to associated infrastructure and job creation spin offs. The Kenyan and Tanzanian governments and competing international energy companies are lobbying hard for the pipeline development project and a decision on the proposed route appears imminent. Importantly, Uganda must secure the development of this main oil export route ahead of any substantial foreign investment in developing its untapped oil reserves.