Construction of the long-awaited Tanzania-Uganda crude oil pipeline is expected to start in August this year, and will be completed in 2019, officials said.

 

Tanzania Petroleum Development Corporation (TPDC) Executive Director James Mataragio said in a statement on Monday that the 4-billion-U.S. dollar oil pipeline project will speed up socio-economic development between the two east African nations.

 

The 1,403-kilometer pipeline will link oil fields in Uganda's Lake Albert, Hoima region to Tanga port in Tanzania.

 

According to the TPDC official, the construction of the crude oil pipeline will be carried out by three oil firms--UK's Tullow Oil PLC, France's Total E&P and China's Cnooc.

 

Mataragio was optimistic that the project would start and complete within the time-frame.

 

Once completed, the oil pipeline will be able to transport up to 200,000 barrels per day passing through a number of Tanzanian regions from the Indian Ocean port of Tanga to Uganda.

 

"It is anticipated that over 200,000 tones of bare pipes, materials and equipments such as pipe insulation, pump, bulk heating and trace heating stations will be imported through Tanga port," he said, adding that the crude oil pipeline project will also increase foreign Direct Investment to Tanzania by more than 50 percent per annum.

 

He said the construction will lead to installations of 200km of permanent new roads and corresponding bridges, and upgrades to 150km of existing roads.

 

The project will also open up regional integration in the energy sub-sector taking into consideration that Uganda is in need of natural gas from Tanzania to power processing of the iron ore.

 

Last week, Tanzanian and Ugandan leaders approved the project, which is expected to create more than 15,000 jobs and will be for the benefit of both countries and other east African countries.