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HomeENERGY & MINERAL RESOURCESMilestones Achieved: Uganda,Tanzania Secure $3.55 Billion As East Africa Oil Pipeline Project...

Milestones Achieved: Uganda,Tanzania Secure $3.55 Billion As East Africa Oil Pipeline Project Commences

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The $3.55 billion East African Crude Oil Pipeline (EACOP) project, aimed at transporting crude oil from Uganda to Tanzania’s Tanga port, is progressing steadily, according to Uganda’s Energy Minister, Ruth Nankabirwa. Spanning 1,443 kilometers, the pipeline has hit several significant milestones, marking an important phase in East Africa’s oil production journey.

Minister Nankabirwa confirmed the successful delivery of 1,100 kilometers of pipe to Tanzania, a crucial step toward the project’s completion. Additionally, a thermal insulation plant, essential for maintaining the integrity of the crude oil during transportation, has been fully established in Tanzania.

The construction process is advancing with notable achievements by the China Petroleum Pipeline Engineering Company, Ltd., the contractor overseeing the pipeline’s construction. So far, 90 kilometers of the pipeline have been welded in Tanzania, while over 10 kilometers of welding work has been completed in Uganda.

The EACOP project stems from Uganda’s significant oil discovery in 2006, which identified an estimated 6.5 billion barrels of oil, of which 1.4 billion barrels are considered commercially viable. The pipeline is expected to facilitate the export of Uganda’s crude oil, contributing to the country’s economic growth and regional energy security.

Once operational, the pipeline will transport crude oil from Uganda’s oilfields in the Albertine Graben to the Tanga port on Tanzania’s Indian Ocean coast for export. This partnership is seen as a major step in unlocking Uganda’s oil potential and strengthening economic ties between the two nations.

Minister Nankabirwa highlighted the importance of the project, noting its potential to create jobs, generate revenue, and drive infrastructure development in both Uganda and Tanzania. The project aligns with Uganda’s broader energy strategy to enhance its position in the global oil and gas sector.

The EACOP is on schedule and remains a pivotal development for the region, reflecting the commitment of both governments to advancing energy projects that benefit their economies and populations. As the project continues to progress, it promises to transform East Africa into a key player in the global energy market.

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