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By In2EastAfrica - Thu Jun 23, 3:08 pm
* Pipeline targets industries, power producers in Kenya
* Planned to be running in 2015
The study conducted for the EAC by Denmark's COWI assumed the pipeline would be in place by 2015.
A pipeline to move natural gas from Tanzania's commercial capital Dar es Salaam to the coastal city of Tanga and Mombasa in Kenya is seen costing up to $630 million, an East African Community study showed on Wednesday.
Tanzania has found gas deposits in four areas - Songo Songo island off the eastern coast, in nearby West Songo Songo, Mnazi Bay in southeastern Tanzania and Mkuranga near Dar es Salaam.
In addition to producing electricity and powering industries in Tanzania, the country and Kenya are pushing for a pipeline that will export some of it to Kenya
The study conducted for the EAC by Denmark's COWI assumed the pipeline would be in place by 2015. It said the four most feasible options for the pipeline were for it to run across land as opposed to sea, which would be too expensive.
"The feasibility study comprises four on-shore routing options and one off-shore option. The investment cost of the on-shore options are in the range of $515-630 million," the study said.
Tanzania's government puts the east African country's proven natural gas reserves at 7.5 trillion cubic feet.
The study said that along the route - expected to be between 360 km (225 miles) and 558 km - there was possibility of supplying gas to a cement factory in Tanga.
The study said there were also plans for a new 100 MW power plant in Tanga, whose cost was not included in the study.
The study said that on the Kenyan side, customers targeted included industries in Mombasa and four existing heavy fuel oil-powered plants producing a total 299.5 MW.
The pipeline will also have the potential to supply 710-720 MW to two new plants meant to run on coal and diesel.
The two countries have yet to say how the project will be funded.
By George Obulutsa, Reuters
* Pipeline targets industries, power producers in Kenya
* Planned to be running in 2015
The study conducted for the EAC by Denmark's COWI assumed the pipeline would be in place by 2015.
A pipeline to move natural gas from Tanzania's commercial capital Dar es Salaam to the coastal city of Tanga and Mombasa in Kenya is seen costing up to $630 million, an East African Community study showed on Wednesday.
Tanzania has found gas deposits in four areas - Songo Songo island off the eastern coast, in nearby West Songo Songo, Mnazi Bay in southeastern Tanzania and Mkuranga near Dar es Salaam.
In addition to producing electricity and powering industries in Tanzania, the country and Kenya are pushing for a pipeline that will export some of it to Kenya
The study conducted for the EAC by Denmark's COWI assumed the pipeline would be in place by 2015. It said the four most feasible options for the pipeline were for it to run across land as opposed to sea, which would be too expensive.
"The feasibility study comprises four on-shore routing options and one off-shore option. The investment cost of the on-shore options are in the range of $515-630 million," the study said.
Tanzania's government puts the east African country's proven natural gas reserves at 7.5 trillion cubic feet.
The study said that along the route - expected to be between 360 km (225 miles) and 558 km - there was possibility of supplying gas to a cement factory in Tanga.
The study said there were also plans for a new 100 MW power plant in Tanga, whose cost was not included in the study.
The study said that on the Kenyan side, customers targeted included industries in Mombasa and four existing heavy fuel oil-powered plants producing a total 299.5 MW.
The pipeline will also have the potential to supply 710-720 MW to two new plants meant to run on coal and diesel.
The two countries have yet to say how the project will be funded.
By George Obulutsa, Reuters
