The governments of Uganda and Tanzania have agreed to jointly build a new interconnection gas pipeline, which is expected to ship gas supplies from Tanzania's fields to potential gas buyers in Uganda. State-run Tanzania Petroleum Development Corporation (TPDC) will look for a contractor to carry out feasibility studies.
Tanzania's natural gas reserves are estimated at 57 tcf (1,610 bcm) and are mostly located in offshore fields. The proposed gas pipeline would connect Dar es Salaam, Tanga near the Indian Ocean and Mwanza on Lake Victoria; it would then cross the border to Uganda. The project is part of a cooperation energy agreement between the countries. In 2016, the countries agreed to build an oil pipeline to transport Uganda's land-locked crude oil to offshore markets.
The two countries are becoming closer as the foundation stone for the US$3.5bn East African Crude Oil Pipeline (EACOP) project, a 1,400-km-long crude oil pipeline between the two countries has been laid at the beginning of August 2018.