ENTEBBE, Uganda — The East African Crude Oil Pipeline (EACOP) project has taken a major step toward completion with the delivery of the final batch of pipes for the 1,443-kilometer mega-project, officials confirmed this week.
The last 80 kilometers of piping were part of 16 shipments delivered to Dar es Salaam Port in Tanzania by manufacturer Panyu Chu Kong Steel Pipe Company Limited. The final shipment completes the entire pipeline material needed for the project, which began receiving pipes in batches in December 2023.
The arrival clears a key logistical hurdle as Uganda and its joint venture partners race to deliver first oil next year.
“I can tell you the EACOP works are progressing well,” an energy ministry official said. “Now that all the needed pipes are here, the project will progress faster.”
Project Momentum and Financial Boost
Irene Bateebe, Permanent Secretary for the Ministry of Energy, confirmed the development, calling it a major boost. She stated the arrival of the final batch means the planned date for first oil remains on track.
“The oil and gas project has been a significant foreign direct investment earner and production will enable the country to earn the much-needed revenues for infrastructure development,” Bateebe said.
The project recently secured the first portion of its external debt, totaling about $1 billion. The financing is part of a larger $2.35 billion debt component and involves contributions from four global and regional financial institutions, including the African Export Import Bank, the Islamic Corporation for the Development of the Private Sector, and Standard Bank of South Africa. Local banks Kenya Commercial Bank Uganda and Stanbic Bank Uganda Limited also provided funding.
Construction Status
Construction activities are progressing across the pipeline’s three lots. The final pipes will undergo thermal insulation coating at the Nzega facility before being sent to the corridor for welding and eventual burial.
To date, project partners have completed about 800 kilometers of pipe welding, applied liquid epoxy coating to 300 kilometers, and buried 115 kilometers of the pipeline underground. Work has also commenced on installing high-voltage cables along the EACOP route.
Oil and gas developments are projected to significantly boost Uganda’s economy once oil starts flowing. Government projections estimate the upstream projects will generate annual average revenues between $1 billion and $2.5 billion. The International Monetary Fund (IMF) has projected that Uganda’s domestic revenues will gradually increase to $19 billion within three years of production.
