East Africa Pipeline Project Accelerates Toward Completion
The East Africa Crude Oil Pipeline project is making significant progress after overcoming several funding delays, with completion now at 64.5% and $3.6 billion of the project’s investment already utilized. The ambitious infrastructure project continues to advance despite ongoing opposition from environmental groups.
The EACOP will become the world’s longest heated oil pipeline, designed to transport crude from Uganda to the coast of Tanzania for export to international markets. The project carries a $5 billion price tag and faced initial funding challenges when traditional lenders, including the World Bank, declined to finance the oil infrastructure.
Alternative financing was secured through other banking institutions, enabling Uganda to become an oil exporter at an initial rate of 216,000 barrels daily, with plans to increase to 246,000 barrels daily. The project ownership structure includes TotalEnergies as operator with a 62% stake, the national oil companies of Uganda and Tanzania with 15% each, and China’s CNOOC holding an 8% stake.
TotalEnergies operates both the Tilenga oil project in Uganda, which will produce oil for the pipeline, and the associated infrastructure. The company has emphasized that both projects rank among its lowest-emission operations, with average Scope 1 and 2 intensity of 12 kilograms of CO2 equivalent per barrel of oil equivalent.
Source: Oil Price
