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Construction Of Oil Pipeline To Start In The Next Financial Year -Gov’t

Government through the Minister of Finance, Planning and Economic Development, Matia Kasaija has revealed that despite criticism from sections of the public, the construction of the East African Crude Oil Pipeline (EACOP) is expected to commence in the coming financial year.

“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,” said Kasaiaja.

The Minister made the revelation while presenting the 2022/2023 national budget where he highlighted Government’s plans for oil and gas sector.

Government also plans to enhance the capacity of the Uganda National Oil Capacity to invest in oil and gas development.

According to Government, Shs904.1Bn has been allocated towards the development and commercialisation of minerals, oil and gas.

The estimated total cost of the EACOP project is US$3.55 billion (Shs13.319Trn) and this will be the capital associated with the construction of the pipeline. This will be directly injected into the economies of Tanzania and Uganda, increasing their Foreign Direct Investment (FDI) by over 60 % during the construction phase

It should be recalled that Uganda signed an agreement with Tanzania for the construction of a Crude Oil Export Pipeline from the Albertine Graben in Uganda to the East African Coast were undertaken with a view to selecting the least cost route for transporting Uganda’s crude oil to the coast. The Hoima (Uganda) – Tanga (Tanzania) route was selected as more secure, at a 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, Hoima in Uganda to Chongoleani, Tanga in Tanzania.


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