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Uganda Gas Production to Start in Q3 2011

Source: www.gulfoilandgas.com 4/29/2010, Location: Africa

London-based explorer Tullow Oil said it expected to start producing gas in Uganda by the third quarter of 2011, which will help boost the country's energy production by some 12 percent.

The east African nation is gearing up to start producing crude oil over the next few years after foreign explorers found hundreds of millions of barrels of oil reserves in the west on the border with the Democratic Republic of Congo.

"We still expect to see first gas in Q3 next year which will lead to power generation for Uganda," Tullow's Uganda country manager, Brian Glover, said.

"The amount of gas we'll generate is relatively small, but it's enough to power a 50 megawatt plant. That's what we'll be doing," he told Reuters at an investment conference.

Glover said that a new power station will be built by Jacobsen Elektro in Hoima in western Uganda.

The region's third largest economy generates 380.3 megawatts (MW), the state-run Electricity Regulatory Authority said.

The body said earlier three mini-hydro power stations were due to come online this year, injecting an additional 33 MW and pushing electricity output at peak up to 413 MW.

Ugandan President Yoweri Museveni has said the nation should be able to generate 3,800 MW of power in the next five years and 17,000 MW in 15 years.

Uganda endured its worst electricity crisis in 2006, when generation capacity plummeted to less than half after a prolonged drought eroded water levels in Lake Victoria and cut output from its main hydropower facilities at on the Nile.

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