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Kenya and Tanzania consider trading gas

The Presidents of Kenya and Tanzania are considering trading gas and will start discussing the required policies and infrastructures for exporting Tanzanian gas to Kenya. Tanzania is estimated to hold more than 57.5 tcf (over 1,600 bcm) of recoverable gas reserves and could supply gas to its neighbour, which is planning to import gas from outside East Africa develop gas-fired power projects.

Tanzania is planning to build a US$1.9bn fertilizer plant that would be commissioned in 2024 and an up to 10 Mt/year (13.5 bcm/year) gas liquefaction plant and export terminal that could be commissioned in 2028. The government expects to conclude discussions with a consortium of Equinor, Shell, ExxonMobil, Ophir Energy and Pavilion Energy in September 2019. The consortium would develop the project in partnership with the state-owned Tanzania Petroleum Development Corporation (TPDC). Tanzania is also planning to export gas to Uganda and agreed in August 2018 to build a new gas pipeline to Uganda.