Tanzania, Kenya agree to fast-track development of gas pipe

The presidents of Kenya and Tanzania agreed on October 11 to accelerate the development of a cross-border natural gas pipeline that will bolster trade and ease energy costs for both countries.

The agreement was reached during bilateral talks in Dar es Salaam between Tanzanian president Samia Hassan and his Kenyan counterpart William Ruto. Hassan and Kenya's former president Unuru Kenyatta signed a deal on launching the project last year, but construction has not yet started. Neither president suggested a timeframe for the project's realisation.

"We will not expedite the gas pipeline from Dar es Salaam to Mombasa and eventually to Nairobi," Ruto said in a speech, adding that the project would be a public-private partnership.

"We are going to ensure that whatever the government of Kenya needs to do will be done in a timely, efficient and effective manner," so that gas is secured "in the shortest time possible."

Kenya generates the overwhelming majority of its electricity from renewable sources, while Tanzania relies largely on biofuels and waste. However, the latter is thought to be endowed with significant but mostly prospective gas resources. Shell and Equinor are negotiating an agreement with the Tanzanian government on developing an LNG terminal, underpinned by offshore gas reserves.