EACOP closes first financing tranche for pipeline project
What you need to know:
- The financing, secured from a group of leading financial institutions, is a key milestone for the pipeline, which will transport crude oil from Uganda’s Kabaale region to Tanzania’s Tanga port.
Dar es Salaam. EACOP has successfully closed the first tranche of external financing for the East African Crude Oil Pipeline (EACOP) project, a major step forward in the development of this ambitious infrastructure.
The financing, secured from a group of leading financial institutions, is a key milestone for the pipeline, which will transport crude oil from Uganda’s Kabaale region to Tanzania’s Tanga port.
In a statement, EACOP said the financing consortium includes regional heavyweights such as the African Export Import Bank (Afreximbank), The Standard Bank of South Africa, Stanbic Bank Uganda, KCB Bank Uganda, and the Islamic Corporation for the Development of the Private Sector (ICD).
EACOP is a joint venture involving several major stakeholders, including TotalEnergies (62 percent ), Uganda National Oil Company Limited (UNOC – 15 percent), Tanzania Petroleum Development Corporation (TPDC – 15 percent), and China National Offshore Oil Corporation (CNOOC – 8 percent).
The closure of the first financing tranche has been hailed as a sign of strong financial and shareholder commitment to the long-term success of the pipeline.
The East African Crude Oil Pipeline is poised to play a pivotal role in the export of Uganda’s crude oil, stretching 1,443 kilometers — 296 kilometers in Uganda and 1,147 kilometers in Tanzania.
Once operational, the pipeline will have the capacity to transport up to 246,000 barrels of crude oil per day, marking a transformative shift in the region’s energy sector.
The project will also feature six pumping stations, two pressure reduction stations, and a marine export terminal in Tanzania,
Construction on the pipeline is well underway in both Uganda and Tanzania. The project has made significant strides, with overall progress exceeding 50 percent by the end of 2024.
Over 8,000 local workers have been employed, with approximately 400,000 man-hours dedicated to training initiatives.
The project has reportedly spent $500 million on goods and services sourced locally, highlighting its positive economic impact on the region.
EACOP Ltd say it remains committed to the highest standards of environmental sustainability and social responsibility, adhering to the International Finance Corporation’s (IFC) guidelines and the Equator Principles.
These efforts ensure that the project not only contributes to regional development but also minimizes environmental impact and promotes positive community engagement.
The East African Crude Oil Pipeline is set to reshape the region’s oil export infrastructure, offering East Africa a critical link to international markets and positioning it as an emerging player in global energy trade.
