Kenya intends to pursue the construction of a gas pipeline linking Tanzania's main city, Dar es Salaam, to the coastal city of Mombasa and on to the capital Nairobi, in a bid to reduce energy costs, Kenya's president William Ruto has said.
The 600km pipeline has been estimated by local reports to cost around $1.1bn (£990m).
The President spoke to Tanzanian media on Monday, shortly after holding bilateral talks with President Samia Suluhu on his first visit to the neighbouring country since taking office in September.
The project would reduce energy charges in the industrial sector, as well as for families in their homes, Mr Ruto said.
In May last year, Mr Ruto's predecessor Uhuru Kenyatta and Ms Suluhu signed a preliminary agreement to transport gas from Tanzania to Kenya for power generation and possibly for cooking and heating.
The agreement was part of a longer-term plan to develop infrastructure between the two major East African economies.