Oil & Gas


EAST AFRICA’S EACOP SHAPES REGIONAL ECONOMY.

JUMA SULEIMAN
2 weeks, 3 days

The East African Crude Oil Pipeline (EACOP) is transforming from an ambitious vision into a major regional economic asset. With construction now 79 percent complete and final commissioning scheduled for July 2026, the project is emerging as a central driver of economic growth, industrial development, and cross-border integration for both Tanzania and Uganda. Beyond trade and logistics, EACOP has already created jobs and provided structured industrial employment for communities along its route.

Tanzania has emerged as the primary transit country, with more than three-quarters of the 1,443-kilometre pipeline passing through its territory. Over 120,000 jobs have been created across both countries, including 12,000 positions benefiting youth and local communities, providing skills-based industrial employment. The pipeline is stimulating economic activity through construction, transport, logistics, and locally sourced materials while establishing Tanzania as a strategic energy transit hub.

For Uganda, EACOP is central to unlocking an estimated 6.5 billion barrels of crude oil and supporting the country’s Vision 2040 economic transformation. Transportation costs along the pipeline are projected at 12.77 US dollars per barrel, enhancing Uganda’s export competitiveness while ensuring predictable revenue flows. The project also facilitates skills transfer, with workers trained in advanced oil technologies, pipeline operations, environmental management, and industrial safety, creating a lasting human capital legacy.

Technically, EACOP will be the world’s longest electrically heated crude oil pipeline, capable of transporting up to 246,000 barrels per day from Hoima in western Uganda to the Port of Tanga in Tanzania. Environmental safeguards, insulated piping, and controlled construction practices are integrated to minimise ecological risks while ensuring operational reliability. Once operational, EACOP will strengthen regional integration, deepen economic interdependence, and position East Africa as a meaningful contributor to global oil supply chains.


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