The governments of Tanzania and Uganda have signed an agreement to undertake a feasibility study for the construction of a gas pipeline connecting Tanzania's gas fields to Uganda.

Tanzania Deputy Prime Minister and Energy Minister Doto Biteko said the agreement follows a memorandum of understanding (MOU) signed in 2018 between the two countries.

The MoU related to the pipeline construction from Tanzania to Uganda due to the former making large gas discoveries in the deep sea and land.

Biteko said: "These two countries have agreed to do feasibility work together to facilitate project evaluation and provide a guide to the feasibility of the project, including the project structure, gas requirements, pipe size and other important information about the project for decision-making."

Biteko said that Tanzania discovered significant amounts of natural gas, around 57.54trcf.

However, due to increasing demand for natural gas both domestically and internationally, the government is looking to explore various locations including Eyasi Wembere, Songosongo West, Lake Tanganyika and deep water in the ocean to increase production.

Biteko noted that Tanzania is seeking potential strategic partners to research and develop oil and gas sources in collaboration with the Tanzania Petroleum Development Corporation.

Ugandan Energy Minister Ruth Nankabirwa is urging financing institutions to offer low-cost credit as they look to reduce lending to fossil fuel projects.

Nankabirwa was quoted by Reuters as saying: “I want to ask those financing institutions that had dropped the idea of financing fossil fuels to come and finance this gas project because the gas is clean.”

Currently, Tanzania is seeking cabinet approval for a $42bn liquefied natural gas (LNG) project after completing negotiations with Equinor, Shell and Exxon Mobil in May 2023.

The LNG project is expected to unlock natural gas resources of more than 36trcf.