TANGA: Tanzania’s prime minister says the $5.65 billion East African Crude Oil Pipeline (EACOP) is now 81 per cent complete, underscoring the strategic importance of the cross-border energy project linking Uganda’s oil fields to Tanzania’s coast.
The 1,443-kilometre heated pipeline will transport crude oil from western Uganda to the port of Tanga for export, with a capacity of up to 246,000 barrels per day. Construction began in 2022, and operations are expected to commence in 2026.
Prime Minister Mwigulu Nchemba said the project is a major pillar of regional economic integration and job creation.
He stressed that local content regulations would be strictly enforced to ensure Tanzanian companies and workers benefit from procurement opportunities. Firms found using proxy registrations to bypass ownership rules would face sanctions, he said.
Tanzania holds a 15 per cent stake in the project, alongside Uganda and international energy partners.
While the pipeline has attracted criticism from environmental groups concerned about climate impacts and biodiversity risks, the governments of Tanzania and Uganda view it as a transformative infrastructure investment expected to boost fiscal revenues and regional connectivity.
Officials say thousands of jobs have already been created during construction, with long-term economic spillovers anticipated in logistics, services and port expansion.