Transit Fee Cap Set for Uganda/Tanzania Pipeline

Wednesday, April 27, 2016

Now that Uganda has settled on the pipeline route for its crude, transit fees have been determined. According to Uganda the cost of transporting its crude via a pipeline through Tanzania will be capped at $12.20 per barrel.

Uganda’s Energy and Mineral Development Minister Irene Muloni also told Reuters the pipeline was expected to be ready by 2020.

Muloni said the key consideration in choosing the route through Tanzania as opposed to Kenya was: “A project cost of $3.55 billion and a (transit) tariff of not more than $12.2 per barrel … those were the considerations.”

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