Kenya signs pipeline deal with Ethiopia

Kenya has inked a deal with Ethiopia to construct a crude oil pipeline to run from the coastal town of Lamu to Addis Ababa months after Uganda chose to export her oil through Tanzania

President Uhuru Kenyatta made the pact with Ethiopian Prime Minister Hailemariam Desalegn in Nairobi as part of joint infrastructure projects to integrate the region under the Lamu Port- Southern Sudan -Ethiopia Transport (Lapsset) corridor. Ethiopia is eyeing gas production and exportation starting next year following discoveries.

“The two leaders witnessed the signing of bilateral agreements including a pact on the oil pipeline that will run from Lamu to Addis Ababa under the Lapsset project,” a statement from State House said.

Uganda had initially expressed interest for a joint pipeline with Kenya but later opted to take its oil to overseas markets through Tanzania’s Tanga port.

Kenya is set to start construction of the Sh210 billion crude oil pipeline to be completed in 2021, according to Ministry of Energy and Petroleum.

Overall, Kenya and Ethiopia entered into five pacts, including cooperation in sports, cross-border livestock, health and education.