The first batch of pipes for the $5 billion East African Crude Oil Pipeline (EACOP) has arrived in Dar es Salaam, marking the commencement of construction for the Uganda-Tanzania crude oil pipeline.
This significant accomplishment has occurred despite systematic attempts by an international alliance of environmental advocacy organizations to obstruct the project and render it a mere urban fantasy.
“EACOP announces the arrival at the port of Dar es Salaam of the first shipment of 100km of line pipe, signalling the initiation of the main construction phase for this cross-border pipeline project,” said EACOP in a statement Tuesday.
Environmental groups have campaigned against a pipeline project, urging banks not to finance it, leading to several Western financiers withdrawing, raising doubts about its construction.
The project is projected to cost up to $5 billion, with 40% of the funds coming from debt and the rest from equity.
The construction of a pipeline in Uganda and Tanzania is one of the largest ever inward investments, with France-based TotalEnergies holding a 62% stake. The state-run Tanzania Petroleum Development Corporation (TPDC) and Uganda National Oil Company each own 15% of the shares.
China’s CNOOC holds an 8% stake in Uganda’s 1,445-kilometre pipeline, enabling crude export from Hoima oilfields to Tanga port on Tanzania’s Indian Ocean coast.
Over 1,000 km pipeline project in Tanzania over 24 districts faces opposition from environmentalists and rights activists, claiming displacement and ecosystem damage.
Tanzania and Uganda’s governments have refuted allegations of environmental, social, and governance (ESG) violations, stating that all relevant issues have been addressed.
The 24-inch pipeline is designed to transport 216,000 barrels of crude oil per day, which can be ramped up to 246,000 barrels of crude per day.
The project is expected to have a capacity of 216,000 barrels of oil per day and is estimated to cost around $3.5 billion.
