Oil & Gas

For decades, the Albertine Graben in western Uganda held vast untapped oil reserves, a promise that is now finally moving toward reality. Uganda and Tanzania are preparing to ship their first crude oil exports through the East African Crude Oil Pipeline (EACOP) in October 2026, following technical commissioning planned for July 2026. The milestone is expected to reshape East Africa’s energy and trade landscape.

Construction of the $5-billion, 1,443-kilometre heated pipeline is nearing 80 percent completion, with activity at peak levels across both countries. EACOP will transport Uganda’s waxy crude to the Port of Tanga, marking Uganda’s entry into Africa’s oil-exporting nations, and is designed to carry up to 230,000 barrels per day, with potential scalability to 246,000 barrels per day.

Officials from both nations reaffirmed commitment to the project during a high-level meeting in Dar es Salaam, reviewing pipeline works, pumping stations, and the marine export terminal. Over 120,000 jobs have already been created during construction, alongside skills transfer in engineering, logistics, and energy services, highlighting the pipeline’s broader economic impact for Uganda and Tanzania.

For Uganda, EACOP is central to unlocking an estimated 6.5 billion barrels of crude oil and advancing Vision 2040’s economic ambitions. The project will also boost Tanzania through transit fees, port activity, and regional trade, while facing scrutiny from environmental groups, though sponsors maintain safeguards are in place. If completed as planned, October 2026 will see the first shipment of crude, marking a historic chapter for both countries’ energy sectors.