EACOP vs Lamu pipeline

EACOP vs Lamu pipeline

Green energy: TotalEnergies acquires Uganda power plant​



THURSDAY AUGUST 01 2024​

Bujagali hydro power project.

Bujagali hydropower project in Uganda. TotalEnergies has signed an agreement that will see it acquire a 28.3 per cent stake in the hydropower plant. PHOTO | MORGAN MBABAZI
By ISMAIL LADU
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TotalEnergies has signed an agreement with Bujagali Energy Ltd as part of its plans to invest in energy projects, particularly renewable energy.

The deal will see the oil company acquire a 28.3 per cent stake in the hydropower plant located in Jinja, 80km east of Kampala.

With a capacity of 250 MW, the plant covers a significant part of Uganda's electricity demands.

Total will also acquire minority stakes in two projects under development in Rwanda (260 MW) and Malawi (360 MW).

"This acquisition of renewable hydroelectric assets and projects in Africa reflects our desire to contribute to the continent's energy transition by bringing electricity to the people of African countries," the company said in a statement released on Tuesday.

According to Patrick Pouyanné, the chairman and CEO of TotalEnergies, this transaction is an example of the oil major's ability to implement its multi-energy strategy in oil-producing countries to support them in their energy transition.

"We believe that TotalEnergies will be a strong asset owner going forward, with the ability to further develop the projects and contribute to the energy transition in Africa," he said.

TotalEnergies has interests in a number of hydropower projects worldwide with a gross capacity of 3.7GW. These include 218MW installed in Europe – France (19MW), Portugal (33MW) and Turkey (166MW) – 1.5GW under development in Mozambique (Mphanda Nkuwa project) and 2GW under development by Adani Green in India.

Total is also developing renewable energy projects in Uganda and Tanzania to meet the growing demand for electricity, reportedly over five per cent per year, and plans to install between 500 MW and 1 GW of gross capacity in the two countries.

The company has already invested in solar in Uganda, with a power plant in Soroti, and plans for more in Tororo and Iganga by the end of next year.

In Tanzania, the company is working on a 115MW solar power plant and a 100MW wind power plant in projects worth $500m over the next five years, according to highlights from the company's "Sustainability & Climate Workshop" held in March this year.

Uganda hopes that this development will keep electricity tariffs low, an issue that private sector players through the Uganda Manufacturers Association and the Private Sector Foundation Uganda have been pushing for. The cost of doing business in Uganda remains one of the highest in the East African region, in part due to the cost of electricity for manufacturers, which is currently over 10 US cents per kWh – well above President Yoweri Museveni's recommendation of 5 US cents per unit.

"We are delighted to become a player in the hydropower sector in Uganda, a country where we are also developing a major oil project," TotalEnergies said.

In Uganda, TotalEnergies is involved in oil and gas development projects in the Lake Albert basin alongside China National Offshore Oil Corporation and Uganda National Oil Company.

Minister for Energy and Mineral Development, Ruth Nankabirwa Ssentamu, said: "This is good news because TotalEnergies is involved in fossil fuel activities and this acquisition of stakes in the Bujagali hydropower plant will go a long way."

www.theeastafrican.co.ke

Green energy: TotalEnergies acquires Uganda power plant

The company has already invested in a solar plant in Uganda and plans for more.
www.theeastafrican.co.ke www.theeastafrican.co.ke
 


View: https://x.com/MwangoCapital/status/1824434231411372366​


Uganda begins using Dar es Salaam port for oil transportation​

The Citizen Reporter
Friday, August 16, 2024
port.jpg

Dar es Salaam Port

By The Citizen Reporter
Media/news company
Mwananchi Communications Limited

What you need to know:​

  • Uganda plans to transport approximately 36 million liters of oil each month—equivalent to 1,028 truckloads—through the Port of Dar es Salaam
Dar es Salaam. The Uganda National Oil Company (UNOC) has bugan shipping oil products through the Port of Dar es Salaam.

Previously, UNOC utilized the Port of Mombasa in Kenya and relied on the Kenya Pipeline Company (KPC) for transportation.

According to a statement signed by UNOC's chief executive officer, Ms. Proscovia Nabbanja, "Uganda plans to transport approximately 36 million liters of oil each month—equivalent to 1,028 truckloads—through the Port of Dar es Salaam." UNOC anticipates that this volume will increase over time.

The first shipment of 18 million liters (520 truckloads) has begun loading in Dar es Salaam and is expected to arrive in Kampala in the coming days.

The agreement between the Dar es Salaam Port and UNOC was established from May 24 to May 25, 2024, during the Second Business Forum held in Dar es Salaam.

During the forum, the two countries agreed to enhance oil and other product transportation routes through Dar es Salaam instead of Mombasa.

This decision was prompted by technical and cost issues associated with using the Mombasa port, leading Uganda to seek Dar es Salaam as an alternative.

Tanzania's Deputy Prime Minister and Minister of Energy, Dr. Doto Biteko, emphasized that the agreements aimed to strengthen economic relations, particularly in the energy and industrial sectors.

"This meeting aimed to enhance infrastructure and foster cooperation in trade and industry," Dr. Biteko said.

Earlier this year, Uganda began negotiations with Tanzania to use the Dar es Salaam Port for its oil imports, intending to end reliance on Kenya's Mombasa port.

Uganda's dissatisfaction with the current system, where Ugandan fuel companies acquire 90 percent of their supplies through affiliated firms in Kenya, led to this decision.

President Yoweri Museveni expressed concerns about supply disruptions and high fuel prices.

In response, Uganda announced in November 2023, that it would transfer exclusive rights for petroleum supply to a unit of global energy trader Vitol.

Uganda imported approximately $1.6 billion worth of petroleum products in 2022, most of which came from the Gulf region.

Although Uganda initially planned to continue imports through Kenya, Energy Minister Ruth Nankabirwa reported that the Kenyan government refused to grant the necessary license.

"We are negotiating with the Tanzanian government, and I will meet with Her Excellency, the President, on this matter," Nankabirwa stated earlier this year.

"We want to find a route that ensures the security of our petroleum supplies."

www.thecitizen.co.tz

Uganda begins using Dar es Salaam port for oil transportation

Uganda plans to transport approximately 36 million liters of oil each month—equivalent to 1,028 truckloads
www.thecitizen.co.tz www.thecitizen.co.tz
 
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