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Dec 20, 2013 | 17:21 GMT

East Africa's Pipeline Potential

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(Stratfor)

The energy map of East Africa is changing. New oil and gas exploration projects, along with the potential establishment of a manufacturing base in East Africa, have created an interest in pipeline projects to carry natural gas and crude oil to export markets or refineries and to guarantee the supply of fuel to internal markets. However, without funding from foreign investors, some of the pipeline infrastructure that would meet East Africa's changing energy needs may never get past the planning stages. While some of these pipeline projects are viable, such as Tanzania's gas pipeline from Mnazi Bay to Dar es Salaam that is in progress, the pipeline projects that would diversify South Sudan's export options are much less realistic. Despite the risks of occasional pipeline shutdowns, the global consumer is perfectly content having South Sudan transport oil through Sudan, which requires no additional funding. For Uganda, exporting oil via a rehabilitated Mombasa pipeline would require limited funding compared to Kenya's grand $22 billion vision for the Lamu Port and South Sudan-Ethiopia Transport projects, and a spur from Nairobi to Lake Turkana could be feasible as well.

 

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