From Africa Review. Story by Eville Otuki.

Months after Uganda decided to export its oil through Tanzania instead of Kenya, Kenya has agreed with Ethiopia to build a crude oil pipeline running from the coastal town of Lamu to Addis Ababa.

President Uhuru Kenyatta signed the deal 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.

Kenya signs oil pipeline deal

Ethiopia is eyeing gas production and exports starting in 2017 following gas discoveries.

Uganda 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 plans to start construction of the $2.1 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.

Read more at Africa Review.