East Africa Pipeline Nears Completion Amid Environmental Concerns

The East Africa Crude Oil Pipeline (EACOP) project is advancing rapidly towards completion despite ongoing protests from environmental groups. According to a report by African Energy, as of March 2024, the project is approximately 64.5% complete, with $3.6 billion of its total investment already utilized. The pipeline, which will be the world’s longest heated oil pipeline, is designed to transport crude oil from Uganda to the coast of Tanzania and subsequently to global markets.

Securing financing for the EACOP has proven challenging, particularly as traditional lenders, including the World Bank, opted not to fund oil projects due to environmental concerns. However, other financial institutions have stepped in to provide the necessary capital. The Ugandan government anticipates that the pipeline will enable the country to export oil at an initial rate of 216,000 barrels daily, with plans to increase this figure to 246,000 barrels daily in the future.

Key Stakeholders and Environmental Measures

The ownership structure of the EACOP includes French company TotalEnergies, which holds a 62% stake and serves as the operator. The national oil companies of Uganda and Tanzania each have 15%, while China’s CNOOC owns the remaining 8%. TotalEnergies also operates the Tilenga oil project in Uganda, which is expected to supply oil to the EACOP.

In response to environmental criticisms, TotalEnergies has asserted that both the Tilenga project and the EACOP are among its lowest-emission operations. The company reports an average Scope 1 and 2 intensity of 12 kilos of CO2 equivalent per barrel of oil equivalent. Overall, the total carbon dioxide emissions for both projects over their lifetime are estimated at 13.5 million tons.

Environmental advocacy groups continue to voice concerns about the potential impacts of the EACOP on local ecosystems and communities. As the project nears completion, the balance between economic development and environmental protection remains a contentious issue in the region.

The completion of the EACOP is poised to have significant implications for Uganda’s economy, marking its emergence as a new player in the global oil market. With the pipeline nearing operational status, attention will increasingly focus on the ongoing discussions surrounding environmental sustainability and the responsibilities of stakeholders involved in such large-scale infrastructure projects.