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Piped In, Pipe Plans, and Pipe Dreams Dianne Sutherland Publisher/Chief Editor Presented at 6 th German-African Energy Forum 2012 Hamburg, Germany April 24, 2012 Contact: dsutherland@petroleumafrica.com 1

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African Pipeline Update Presentation, Petroleum Africa, April 2012 2 2 Existing Transborder African Pipelines

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 3 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 Pipeline Challenges Finance Security Threats Terrain 4

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African Pipeline Update Presentation, Petroleum Africa, April 2012 Galsi Pipeline 5

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 6 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 7 Lamu Port Project

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 8 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 9 South Sudan-Uganda

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 10 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 South Sudan-Kenya 11

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 12 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 South Sudan-Kenya-Ethiopia 13

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 14 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 Trans-Sahara Pipeline 15

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 16 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 Zambia Angola 17

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African Pipeline Update Presentation, Petroleum Africa, April 2012 In the Pipeline Galsi Pipeline Lamu Port Project o Shimanzi spur line 3.45 km o Mombasa-Nairobi 450 km o Nairobi-Eldoret 325 km o Nairobi-Eldoret ( Parallel Line) 325 km o Sinendet-Kisumu 121 km Pipeline Possibilities South Sudan-Uganda South Sudan- Kenya South Sudan- Kenya-Ethiopia TransSahara Pipeline Pipe Dreams Angola-Zambia South Sudan-Ethiopia-Djibouti 18 African Pipeline Outlook * Nairobi-Mombasa Upgrade

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African Pipeline Update Presentation, Petroleum Africa, April 2012 19 South Sudan-Ethiopia-Djibouti

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African Pipeline Update Presentation, Petroleum Africa, April 2012 Conclusions 20 European desire for energy security and the desire to lessen dependence on Russian natural gas will play a key role in Galsi and TransSahara pipelines eventually coming to fruition. Political will in East Africa will assure that the needed pipelines and infrastructure projects get underway. Asian demand for energy security will dictate investment in the East Africa region by global players.

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Thank you for your attention! Contact info dsutherland@petroleumafrica.com 21