Energy Principal Secretary Joseph Njoroge
The comment came amid increasing certainty that Tanzania has won
out on its tug-of-war with Kenya to be confirmed as a safer and more
cost-effective route for the pipeline from Uganda.
Kenya is competing with Tanzania to build the pipeline from
oilfields in Hoima, western Uganda. It would either traverse northern
Kenya’s desert to a proposed port at Lamu, near the border with Somalia,
or south around Lake Victoria to Tanga on Tanzania’s coast.
"Whatever the outcome, we (Kenya) will build an oil pipeline,
whether we are together with the Ugandans or not," Njoroge said in a
phone interview Wednesday from Lokichar in northern Kenya.
The pipeline via Kenya would link up with the Lamu Port Southern
Sudan-Ethiopia Transport corridor, a proposed $26 billion project that
will include a port and a railway.
But according to Jacques Nel, senior economist at NKC Independent
Economists in Paarl, South Africa, Kenya’s oil reserves currently
estimated at about 600 million barrels “do not support the country
building its own pipeline.”
“To build its own pipeline at the moment is not viable,” Nel said in a phone interview.
"Kenya has so much more vested interests in the regional pipeline,
they have more to lose,” he added. “They may have to make some
concessions on tariffs, levies to sweeten the deal with Uganda."
A senior executive of Total SA, which is a key partner in the
pipeline project, reiterated in Dar es Salaam on Wednesday that Tanzania
was the preferred route.
Tanzanian president John Magufuli said in early March that he’d
agreed with his Ugandan counterpart Yoweri Museveni to route the conduit
via his country at a cost of about $4 billion.
Total SA, which is developing oil discoveries in Uganda, will help fund the project, according to the Tanzanian government.
The UK-based Tullow Oil Plc, which has its own oil discoveries in
Uganda and Kenya, favors the route via northern Kenya that the Nagoya,
Japan-based Toyota Tsusho Corp. estimates may cost about $5 billion.
Kenyan and Ugandan officials last week toured the Kenyan coastal
towns of Mombasa and Lamu, and Tanga in Tanzania, as they explore the
most feasible route for the pipeline. A ministerial task force
established by Museveni and Kenyan president Uhuru Kenyatta also toured
Hoima and Turkana.
A meeting to decide on which route is most feasible will be held April 7 in the Ugandan capital Kampala, Njoroge said.
“Kenyan oil would be shipped via our ports,” Njoroge said,
dismissing a report in the Nairobi-based East African newspaper last
week that crude extracted from Turkana might be shipped through Tanga.
“It’s a figment of an idea. It can never be.”
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