Monday, September 30, 2024

Uganda receives first batch of pipes for crude oil project

KAMPALA, Uganda

Uganda on Monday received the first batch of coated line pipes for the East African Crude Oil Pipeline, which was delivered to the main camp and pipe yard in Kyotera District, signalling the project developers’ intent to fast track the laying and construction of the cross-border pipeline in both Uganda and Tanzania. 

China Petroleum Pipeline Engineering Co. Ltd (CPP), the construction contractor for Eacop, received nine trucks of insulated line pipe from the coating plant in Nzenga, Tabora Region, Tanzania. 

With the arrival of the insulated line pipes in Uganda, CPP is expected to start laying of the pipeline in Uganda as the developers race against time to export the first barrels of crude oil by the end of next year, a statement from Eacop Ltd said.

“The project remains on track to meet its construction and operational timelines, with a continued focus on safety, environmental sustainability, and local community engagement,” it said.

“This is a major landmark in the construction of the Eacop and a clear sign of the progress of the project. Government and its partners are committed to ensuring that all developments are completed in the most environmentally responsible and sustainable manner,” said Ali Ssekatawa, Director of Legal and Corporate Affairs at the Petroleum Authority of Uganda (PAU). 

He added that civil works have already advanced on the pumping stations, main camps, pipe yards and storage facilities along the 1,443-kilometre pipeline, which will link oil fields in the Albertine Basin in Uganda to the Tanga port in Tanzania.

To date, the project has received 800 kilometres of line pipes, which are currently being coated and insulated at the Nzega Coating Yard.

To mitigate climate change risks, the project will deploy renewable energy for all pumping, heating, monitoring and storage operations, with the 296km section in Uganda to be fully carbon neutral, powered entirely by 80MW of solar and hydroelectric energy, while efforts are underway to develop similar renewable capacity on the Tanzanian side.

The project, estimated to cost $5 billion, is being developed by the Eacop Company, with Uganda and Tanzania as shareholders, each holding a 15 percent stake, while French supermajor TotalEnergies holds 62 percent and China National Offshore Oil Corporation Uganda Limited owns eight percent.

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