Posted on :Saturday , 24th November 2018
The Head of East Africa oil & gas sector at Standard Bank, Mr. Maina Kigundu, said that "Foreign exchange burden of importing and distributing the refined oil and gas products will maintain balance of payment challenges while liberating much needed foreign exchange for more strategic human development."
He also mentioned that there is an increase in foreign exchange that is required to meet the regions expanding need for oil and gas product, while this is driving away the important for East Africa's government to build an important oil and gas infrastructure that is capable of decreasing the regions import of refined products.
It has been expected that the impact of this growth will lead the regional ecosystem for oil production and natural gas supply.
This may also increase the efficiency and security of supply.
Further, there are also expectations that the cost of refined products to consumers will reduce in the long term.
Since East africa has always been an importer of refined oil and gas, specially from Middle East, the majority of this products are imported to the region through Mombasa in Kenya and even through Dar-e-salaam in Tanzania.
There has been only one significant importer of crude oil and that is South Sudan.
In 2021, Uganda's first production is expected and also expected to cross the same production at 200000 bpd by 2026.
While this increase will benefit Uganda to be the fourth largest oil producer in Sub-Saharan Africa.
Whereas, Kenya will be positioned as nineth largest oil producer in Sub-saharan Africa by increasing its production to 60000 bpd by 2026.
Further, this growth will benefit the region as it will increase local oil production of East africa which will transform the refined products infrastructure and will also increase the investment and development of East Africa's oil and gas sector.
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