Uganda, Tanzania sign for pipeline feasibility study

Government officials from both nations have agreed to conduct a feasibility study for a pipeline connecting Tanzania’s deepwater oil and gas fields to Uganda’s capital, Reuters reported on Friday.

The pipeline will transport gas from the proposed USD 42-million Tanzania LNG project that looks to unlock confirmed offshore gas deposits of 57.5 tcf.

The proposed facility will be located in Lindi on the southern coast of Tanzania adjacent to the offshore fields.

The plan to build the Tanzania LNG project is being drafted by a consortium consisting of Equinor, Shell, ExxonMobil, Ophir Energy and Pavilion Energy and is waiting for government approval.

At the signing of a deal between Tanzania and the developers in May 2023, the FID was expected in 2025 and the LNG plant was expected to come on line by 2028.

The facility will source gas from blocks 1, 2 and 4, which will be linked under amended contracts.

Shell currently operates Block 1 and Block 4, which together hold estimated recoverable gas reserves of 453 bcm (16 tcf).

Equinor operates Block 2 along with its partner ExxonMobil. The concession is expected to hold 566 bcm (20 tcf) of gas reserves.