Construction of oil pipeline begins next financial year – Gov’t

Construction of the East African Crude Oil Pipeline (EACOP) is expected to begin next financial year, revealed Finance, Planning and Economic Development Minister, Mr Matia Kasaija.

This is amid criticism from some sections of the public who say the construction of the EACOP will be environmentally dangerous.

“While there have been negative campaigns against the development of the crude oil pipeline, the government will develop Uganda’s oil and gas resources in a responsible and sustainable manner for the benefit of all Ugandans,” Mr Kasaija said while presenting the 2022/23 national budget.

The minister also said government plans to enhance the capacity of the Uganda National Oil Company (UNOC) to invest in oil and gas development after it allocated Shs904.1b towards the development and commercialisation of minerals, oil and gas.

It is estimated that the EACOP project will take a total cost of Shs13.319t (US$3.55b) and this will be the capital associated with the construction of the pipeline.

This money will be directly injected into the economies of Uganda and Tanzania, increasing their Foreign Direct Investment (FDI) by more than 60 per cent during the construction phase.

Uganda signed an agreement with Tanzania for the construction of the crude oil export pipeline from the Albertine Graben in Hoima to Tanga in Tanzania.

The Hoima route was selected as more secure, cheaper cost and, therefore, a lower tariff.

The EACOP is a 1,443km, 24-inch diameter-heated and buried crude oil pipeline that will start from Kabaale in Hoima, Uganda to Chongoleani in Tanga, Tanzania.

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