Kenya Deal with Ethiopia to Build Oil Pipeline

Kenya to build its own oil pipeline to transport crude oil

Kenya to build its own oil pipeline to transport crude oilENERGY BRIEF

Kenya and Ethiopia are set to finalize a deal that will see the two countries build a refined oil pipeline from Kenya’s north coast to the Ethiopian capital.

Kenya and Ethiopia signed a memorandum of understanding (MoU) that will see the two countries jointly build the pipeline after Uganda switched to build theirs with Tanzania.

Kenya is seeking to open up a new port on its north coast at Lamu. There are plans to build an economic corridor with transport and other links to Ethiopia, South Sudan and Uganda.

In a joint communiqué, the two leaders (President Uhuru and Ethiopia’s Prime Minister Hailemariam Desalegn) stressed about their commitment to seen through the agreements are finalized on the development and operation of a product oil pipeline from Lamu Port to Addis Ababa by the end of 2016.

Ethiopia has a bigger population but has a smaller economy than that of Kenya, the pipeline, new railway and highway expected to open up a huge market for the land-locked country.

Kenya and Ethiopia are cited as Africa’s fastest expanding economies

According to Kenya’s Energy Cabinet Secretary Charles Keter, plans are in place to complete the $2.1 billion crude oil pipeline by 2021.

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