Tanzania to construct crude oil pipeline running from Hoima in 2021

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Port Tanga in Tanzania

The construction of a major crude oil pipeline from Buseruka Sub-county in Hoima District to Tanga in Tanzania will begin in April 2021, Tanzania’s Minister of Energy, Dr. Medard Kalemani, has announced.

The pipeline will be 1,445Km long and will cost $3.5 billion.

Speaking at Tanzania’s National Assembly last week, Dr. Kalemani said that an environmental audit has been completed and communities close to the pipeline will be compensated.

Dr Medard Kalemani, Tanzania’s Minister of Energy

The Minister said the project is still waiting for a final ivestment decision (FID) and the priority now is to complete the host government agreements (HGA), a shareholders’ agreement (SHA), a land lease agreement (LLA) and a port agreement (PA).

“The priorities during the incoming financial year is to complete these agreements and compensation of affected people,” he noted.

The East African Crude Oil Pipeline (EACOP) was scheduled to begin in January 2017 and be completed in 2020, but was delayed due to disagreements on the provisions of the HGA, SHA and transportation tariffs.

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