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KEYNOTE ADDRESS BY H.E. YOWERI KAGUTA MUSEVENI AT THE COMMISSIONING OF THE HOIMA (UGANDA) -TANGA (TANZANIA) PIPELINE

Monday, 7th August 2017

His Excellency Pombe Magufuli,
All the distinguished guests,
Ladies and gentlemen,

Greetings from the fraternal people of Uganda.

We are here today to lay the Foundation stone for the construction of the Hoima-Tanga pipeline to bring the crude oil from the Mwitanzigye area (Lake Albert) to the Tanga Port. 

This is a great event for the two countries and for East Africa. This pipeline is not just for the crude oil of Uganda; it can become an East African Pipeline. There are already hydro-carbon resources detected in Eastern Congo, the Semliki valley; there are confirmed hydro-carbon resources in the Turkana area of Kenya; there are also possibilities of hydro-carbons in Tanzania, Rwanda and Burundi.

In the case of Uganda, 6.5 billion barrels of oil have been confirmed in the 40% of the potential area. Consequently, there will be both the refining of oil in Uganda in order to produce petrol, diesel, aviation fuel and other petro-chemical products such as plastics. There is also associated gas which we shall use to produce some electricity and, maybe, get some nitrogen to add to our phosphates and potassium to produce the NPK composite fertilizers to support our agriculture.

As if to enhance the potential of East Africa, Tanzania, long ago, discovered large quantities of natural gas. Uganda needs either good coal or natural gas in order to process our huge and excellent quantities of iron-ore (Obutare) into steel which is crucial for the building of hydro-dams, the railways and high rise buildings. When we use imported steel, we end-up making our buildings being 3% more expensive on account of just freight (costs of transport). Meanwhile, East Africa spends 1.6 billion dollars importing that steel. This kind of hemorrhage must stop. Uganda, after many years of delays, has sufficient electricity to use in all these industries so as to build the base for a modern economy.

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