Toyota Tsusho to design Uganda-Kenya oil pipeline

Toyota Tsusho oil pipeline
Kenya puts the crude oil recoverable reserves at about 1 billion barrels. PHOTO/FILE
Toyota Tsusho, the trading arm of the Japanese carmaker, has been contracted to oversee a feasibility study and design for the construction of a crude oil pipeline network in East Africa.

Toyota Tsusho, which clinched the tender last month, will conduct a feasibility study and the front end engineering design for the 1,300-km crude oil pipeline that runs from Hoima in Uganda through the Lokichar basin in north-west Kenya to Lamu.

The firm is expected to complete the study within five months of the award, according to Joseph Njoroge, the principal secretary at the Ministry of Energy and Petroleum.

In June, Kenya and Uganda invited bids for a consultant to oversee the design for construction of a pipeline to pump the region’s crude oil to the coast for export.

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In addition to the pipeline, Toyota Tsusho will be required to supervise the construction of a fibre optic cable from Hoima through the Lokichar basin to Lamu, and tank terminals in Hoima, Lokichar and Lamu.

The multi-billion-shilling project will also involve the construction of a 9-km pipeline from the Lamu tank terminal to a loading buoy anchored offshore.

The Kenyan government puts the estimated crude oil recoverable reserves at about 1 billion barrels from the Rift Valley Basin, while Uganda estimates its crude reserves at 6.5 billion barrels.