Uganda Looks to Refinery, Pipeline and Power Projects

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--After a long-running test of nerves among the Ugandan government, oil project developers and regional powers, the Uganda Ministry of Energy wants to accommodate other potential stakeholders in developing a possible refinery project, as well as a pipeline to the Kenyan coast at Mombasa.

Reports say that emphasis is now on the construction of an oil refinery and the use of a 1,200-kilometer pipeline to Mombasa, the port to the Indian Ocean. Earlier this year, the government signed a memorandum of understanding (MoU) with oil companies, in which it was agreed that commercialization of Uganda's oil would be through a crude export pipeline, an oil refinery and a petroleum-to-power project.

Bernard Ongoidia, senior geophysicist at Uganda's energy ministry, said that the project developers are seeking partners for financing. But, he added, oil companies are calling for an export pipeline, which developers considered a "plan B" in their memorandum of understanding. According to the oil companies, who are championing the export pipeline, the total investment will be between $12 billion and $15 billion on completion of the project. In this scenario, $8 billion would go to the upstream developments, and $4 billion to $7 billion would be go to the construction of a crude export pipeline. A joint company release said that the 1,200-kilometer pipeline would be one of the longest heated pipelines in the world.

For related information, see April 17, 2013, article - Uganda Refinery Project Opts to Go Smaller, Adds Export Pipeline.

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