Can Europe Stop The East African Crude Oil Pipeline Project

Published by Juma Mandali Energy Policy

Executive Summary


The East African crude oil pipeline project is sparking a growing controversy over its climate ramifications, amid calls to halt new fossil fuel projects.

The project is scheduled to link Lake Albert in Uganda with the coastal port of Tanga in Tanzania; It will contribute effectively to supplying Europe with crude, at a time when the old continent is seeking to find alternatives to Russian oil.

Because of the waxy nature of Lake Albert crude oil, it will be transported through a hot pipeline, the longest in the world; However, only a third of the reserves, amounting to 6.5 billion barrels, first discovered in 2006, are considered commercially viable, according to the BBC .

The French company Total Energy and the Chinese company Cinoc own a stake in the East African pipeline project, which costs 4 billion pounds ($ 5 billion), according to information obtained by the specialized energy platform.

Economic returns for East African pipeline

80% of the 1,440-kilometre (895-mile) East Africa pipeline , which will be built within a few months, is in Tanzania; Including a storage facility at Chongoliani, about 18 kilometers (11 miles) north of Tanga City.

The first oil is expected to be exploited within 3 years, with at least 230,000 barrels per day pumped at peak times.

It is also expected to achieve significant economic returns for the two countries; Uganda will have revenues of between $1.5 billion and $3.5 billion annually; That is 30-75% of their annual tax revenue.

Reportedly, Tanzania will earn at least $12 a barrel; That's nearly a billion dollars a year.

Although the East African pipeline project includes building a refinery in Uganda for local consumption; Its crude oil will be the basis for export, especially to Europe as a result of the ripple effects of the war in Ukraine, according to the BBC report.

Africa has the right to exploit its wealth

The timing of the East African pipeline project has divided opinion around the world, despite the expected economic benefits.

In September 2022, the European Union stormed the controversy over the East African Crude Oil Pipeline, calling for the project to be halted, citing human rights abuses and environmental and climate concerns.

This intervention has been rejected by the Ugandan and Tanzanian governments, who consider the pipeline vital to boosting their economies.

Some advocates of Africa's economic development have also argued that the continent has the right to use its fossil fuel wealth for development, just as rich nations have done for hundreds of years.

They noted that Africa emits only 3% of greenhouse gases, compared to 17% of European Union countries.

and decisively; Indeed, 92% of Uganda's energy comes from renewable sources, and the proportion is about 84% in Tanzania; In the European Union, the proportion is 22%, according to the International Renewable Energy Agency.

European hypocrisy and lack of funding

Uganda Chamber of Mines and Petroleum member Ellison Karuhanga described EU statements about the proposed pipeline as "hypocrisy".

"Unlike rich countries that will remain rich even after removing their oil and gas revenues, we cannot afford to risk the future of Ugandan generations on assumptions," he added.

In turn, Faten Agad, Senior Adviser for Climate Diplomacy and Geopolitics for the African Climate Foundation, said that "African countries are not receiving the necessary funding for a green transition."

And she continued, "For this reason, we see countries turning to fossil fuels as a means of generating income. I mean that financing for fossil fuels is 3 times higher than financing for green energy, equivalent to $30 billion compared to $9 billion for renewables."

A project that exacerbates the climate crisis

For its part, the group "StopEcop" - which is against the project - asserted that the pipeline will produce 34 million tons of harmful carbon emissions every year.

However, Total Energy, which owns a 62% stake in the pipeline, told the BBC that the project would be "one of the lowest levels of carbon dioxide emissions for the company".

The French oil giant explained that "the pipeline route is designed to reduce its impact on the landscape and biodiversity", stressing that it will significantly improve living conditions locally.

However, Ugandan climate activist Brian stated that the East African pipeline would only turn Uganda into a "fuel station" for Europe and China, stressing that windfall gains from the project would only benefit the country's elite.

Despite threats of arrest and harassment against pipeline opponents, Bryan continues to campaign for the country to go green, as it committed after signing the Paris climate agreement in 2015.

“You're only using oil and gas that has already been developed,” Brian said