Uganda’s $5 billion oil route to the sea gets closer as Tanzania’s giant pipeline hits 88%

The pumping station, located in Muleba District, is one of the infrastructure projects being created to facilitate crude oil transportation through the 1,443-kilometer EACOP system, which would transport oil from Uganda’s Hoima region to Tanzania’s Tanga Port.

The current construction milestone represents significant development in the pipeline, with Tanzania expected to produce around $3.5 billion in income over the next 25 years once the project begins operations.

During the same time span, the development is planned to create over 18,000 jobs, according to the Daily News.

Dmitry Amalyshev, the PS3 Client Site Representative, provided a progress update on the construction during an official delegation visit comprising representatives from the President’s Office, the Ministry of Energy, and the Tanzania Petroleum Development Corporation (TPDC).

The East African Crude Oil Pipeline is a significant infrastructure project that connects Uganda’s Albertine Graben oil reserves to Tanzania’s Port of Tanga for export.

The 1,443-kilometer (897-mile) pipeline will be the world’s longest heated crude oil pipeline, delivering Uganda’s waxy crude oil.

With an estimated cost of $5 billion, EACOP is projected to transport 216,000 barrels of oil per day.

The project is being developed by Total Energies, China National Oil Company (CNOOC), Uganda National Oil Company, and Tanzania Petroleum Development Corporation.

Regardless of its importance, EACOP confronts significant legal, environmental, financial, and social problems.

In December 2023, the project organizers announced that the first 100 kilometers of pipes had been transported to Tanzania’s Dar es Salaam port, marking the start of Uganda and Tanzania’s joint oil project.

The project coordinator, Mr. Msovu, then stated that the pipes will be installed beginning in April 2024 and are expected to be finished by 2025.