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East Africa’s $6 Billion Oil Pipeline Nears Finish

"The main challenge we identified is the delay in completing the electricity transmission infrastructure. Contractors have been directed to finish the work within the agreed contractual timeframe," he said.
June 30, 2026

East Africa’s ambitious bid to become a major player in the global energy market has moved closer to reality after Tanzania announced that the East African Crude Oil Pipeline (EACOP) is now 86 percent complete, with the first shipment of crude oil expected to leave Tanzania’s Indian Ocean coast in January 2027.

Energy Minister Deogratius Ndejembi said construction of the strategic cross-border pipeline remains on schedule and is expected to be substantially completed by August 2026, marking a major milestone for one of Africa’s largest energy infrastructure projects.

Speaking after inspecting progress at the project site, Ndejembi said Tanzania and Uganda are entering the final phase of delivering a pipeline expected to reshape regional energy trade and strengthen East Africa’s role in global crude oil exports.

“We expect the first crude oil tanker to depart from Chongoleani in January 2027. This will mark a historic milestone in the implementation of this strategic project,” he said.

The minister instructed contractors responsible for constructing the electricity infrastructure that will power the pipeline’s pumping systems to complete the remaining work by early August, warning that delays could disrupt the project’s commissioning timetable.

“The main challenge we identified is the delay in completing the electricity transmission infrastructure. Contractors have been directed to finish the work within the agreed contractual timeframe,” he said.

Valued at approximately US$6.02 billion, the East African Crude Oil Pipeline is one of the largest energy investments currently under development in Africa. The 1,443-kilometre heated pipeline will transport crude oil from the oilfields of Hoima in western Uganda to the export terminal at Chongoleani, where it will be loaded onto tankers for international markets.

Tanzania holds a 15 percent equity stake in the project, contributing approximately US$374 million as a shareholder.

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According to the government, the project has already created around 10,000 jobs during the construction phase, with approximately 7,500 positions—representing 75 percent of the workforce—filled by Tanzanians, highlighting its contribution to local employment and skills development.

Tanga Regional Commissioner Ambassador Dr Batilda Burian said the region has emerged as one of the biggest beneficiaries of the project through increased employment, business opportunities and infrastructure development driven by the multi-billion-dollar investment.

Beyond its immediate economic impact, EACOP is expected to strengthen regional integration between Tanzania and Uganda while positioning East Africa as an increasingly important contributor to global energy supply.

Supporters argue that the project will stimulate industrial development, improve transport and logistics infrastructure, generate government revenue and attract additional foreign investment into the region’s energy sector.

However, the pipeline has also drawn international attention because of environmental and climate concerns raised by conservation groups and human rights organisations, which have questioned its long-term environmental impact and the displacement of some communities along the route. Project developers maintain that international environmental and social standards are being followed throughout construction.

With completion now entering its final stages, the countdown has begun toward the first commercial export of Ugandan crude through Tanzanian territory—an event expected to mark a new chapter in East Africa’s energy and economic landscape.

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