The East African Crude Oil Pipeline (EACOP) is a significant infrastructure project designed to transport crude oil from Uganda’s oil fields to the Tanzanian coast for export. Spanning approximately 1,443 kilometers (897 miles), it will connect the Lake Albert region in Uganda to the Port of Tanga on the Indian Ocean. Once completed, EACOP is expected to be the world’s longest electrically heated crude oil pipeline.
Route: The pipeline originates in Hoima, Uganda, traverses through several regions in Tanzania—including Bukoba, Shinyanga, and Singida—before reaching the Chongoleani peninsula near Tanga.
Capacity: Designed to transport up to 216,000 barrels of crude oil per day.
Stakeholders: The project is a collaboration between TotalEnergies (holding a 62% stake), Uganda National Oil Company (15%), Tanzania Petroleum Development Corporation (15%), and China National Offshore Oil Corporation (CNOOC) (8%).
Financial and Environmental Considerations:
Securing financing for EACOP has faced challenges, primarily due to environmental concerns and pressure from climate activists. Several Western banks, including BNP Paribas, Société Générale, and Barclays, have declined to fund the project. In response, stakeholders have increased their equity contributions to ensure progress. For instance, TotalEnergies has committed an additional $400 million, and Uganda has pledged $45 million more. Efforts are also underway to engage potential financiers from China and other regions.
Environmental groups and the European Union have expressed concerns about the project’s impact on local communities, wildlife, water resources, and its contribution to climate change. These apprehensions have led to protests and calls for reevaluation of the pipeline’s construction.
Current Status:
As of October 2024, the project continues to navigate financing challenges, with stakeholders adjusting funding strategies to maintain momentum. The first batch of Chinese-manufactured pipes has been delivered, signaling ongoing progress. A final decision on debt financing is anticipated by the end of the year.
