Application for EACOP construction licence to be processed within 180 days – Gov’t

The East African Crude Oil Pipeline Company (EACOP) Ltd, the firm spearheading the development of Uganda’s crude oil export pipeline, has applied for a construction licence.

A construction licence will enable the company to kick-start the development of the 1,443km, 24-inch diameter heated and buried crude oil pipeline that will start from Kabaale village in Hoima district, Uganda to Chongoleani, Tanga in Tanzania.

It will be the longest heat traced pipeline in the world.

While applying to the Ministry of Energy and Mineral Development on Friday, July 1, 2022, EACOP Ltd’s General Manager, Mr Martin Tiffen, said all is set for the work to commence.

Also present were Mr John Bosco Habumugisha – the EACOP Ltd Deputy General Manager and Mr Lawrence Ssempanji – the Compliance Lead, Uganda.

Upon receipt of the application, Mr Honey Malinga, the Ag. Director of Petroleum at the Ministry pledged continued support from the Government of Uganda to ensure seamless implementation of EACOP.

He said the application will be processed within 180 days.

“I want to thank the company for preparing the application for the construction licence…the Ministry will process the application in accordance with the law, and we look forward to timely commencement of pipeline construction,” said Mr Malinga.

He urged the company to pay attention and swiftly address the issues raised from time to time by the government, communities, local leadership and other stakeholders.

The Inter-Government Agreement (IGA) for the crude export pipeline was signed in May 2017, the Front-End Engineering Design (FEED) for the EACOP was carried out and approved by the Petroleum Authority of Uganda in October 2020 while the Environmental and Social Impact Assessment (ESIA) studies for the EACOP were approved, and the National Environment Management Authority (NEMA) issued the certificate in December 2020.

The licensed upstream oil companies leading the development of this pipeline in Uganda include Total Energies (62% shares), CNOOC Uganda (8%), Uganda National Oil Company (UNOC) [15%), and the Tanzania Petroleum Development Corporation (TPDC) [15%].

The shareholders announced a Final Investment Decision (FID) on February 1, 2022, signifying EACOP Ltd’s commitment to financing the project.

Plans are in advanced stages to secure the land requirements for the EACOP in Uganda —comprising construction camps covering 172 acres; pipeline Right of Way (RoW) and orphan land covering 2,745 acres; and feeder roads covering 182 acres.

The EACOP) is a trans-boundary 1,443km crude oil export pipeline that will transport Uganda’s crude oil from Hoima in Uganda) to Tanga port in Tanzania.

It will provide an alternative outlet for the produced oil to ensure a return on investment for the licensees and government.

The pipeline route was selected as more secure, with a cheaper construction cost and a lower tariff.

EACOP will be the longest heat traced pipeline in the world due to Uganda’s vicious and waxy crude oil.

It will be buried to minimise the environmental impact with some facilities above the ground designed to ensure minimal environmental and social impact.

The pipeline traverses 296km within Uganda through 10 districts of Hoima, Kikuube, Kakumiro, Kyankwanzi, Mubende, Gomba, Sembabule, Lwengo, Rakai and Kyotera.

In Tanzania, it traverses 1,147km across eight regions of Kagera, Geita, Shinyanga, Tabora, Singida, Dodoma, Manyara and Tanga.

The Marine Export Storage Terminal and the Load-Out Facility will be north of Tanga port over the Chongoleani peninsula, Tanzania.

The project will comply with Ugandan and Tanzanian national legislations and international requirements.

The development of this pipeline will contribute to opening another route for the country and other regional partners like Eastern DRC, Burundi, Rwanda, South Sudan, to access the East African coast.

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