Uganda, Tanzania near crude export milestone

FOR decades, the vast oil reserves beneath the Albertine Graben in Western Uganda remained a promise locked in the earth.

Today, that promise is finally flowing toward reality. Uganda and Tanzania are preparing to ship their first crude oil exports through the long-awaited East African Crude Oil Pipeline (EACOP) this year bringing East Africa closer to a historic energy milestone. Officials from both countries say first exports are scheduled for October 2026, following technical commissioning targeted for July 2026, a project expected to reshape the region’s energy and trade landscape.

Construction of the 5 billion US dollars, 1,443-kilometre heated pipeline now nearing 80 per cent completion has entered its final phase, with activity at peak levels across both borders.

Once operational, EACOP will transport Uganda’s waxy crude from the Albertine Graben in western Uganda to the Port of Tanga on Tanzania’s Indian Ocean coast, marking Uganda’s long-anticipated entry into the ranks of Africa’s oil-exporting nations.

A pipeline built for extremes

Designed to operate at around 50 degrees Celsius, EACOP will be the world’s longest heated crude oil pipeline, a technical necessity to keep Uganda’s heavy crude in liquid form during transport.

At full capacity, the pipeline is expected to carry up to 230,000 barrels per day, with officials noting potential scalability to about 246,000 barrels per day.

Developed by a consortium led by TotalEnergies, alongside China National Offshore Oil Corporation (CNOOC), the Uganda National Oil Company and the Tanzania Petroleum Development Corporation, the project is already backed by investments exceeding 3.3 billion US dollars, with all pipeline segments now laid.

“The EACOP is the backbone of Uganda’s crude oil exports and a key driver of economic transformation,” said Ernest Rubondo, chief executive of the Uganda Petroleum Authority.

Regional commitment reaffirmed

Momentum behind the project was reaffirmed during a high-level meeting in Dar es Salaam on January 5, where Uganda’s Energy Minister Dr Ruth Nankabirwa and Tanzania’s Minister for Energy Deogratius Ndejembi reviewed progress on pipeline works, pumping stations, above-ground facilities and the marine export terminal in Tanga.

Construction has advanced steadily, with completion rising from 60 per cent in early 2025 to nearly 79 per cent by December, according to joint project updates. The remaining works focus on system integration, testing and terminal completion. Minister Ndejembi described EACOP as a major economic catalyst for Tanzania, where a significant portion of the pipeline passes.

“Once completed, the project is expected to drive major economic growth, especially in Tanzania,” he said, citing employment creation and local content participation.

Officials estimate that more than 120,000 jobs have already been generated during construction, alongside skills transfer in engineering, logistics and energy services.

Uganda’s oil ambitions

For Uganda, the pipeline is essential to unlocking its estimated 6.5 billion barrels of crude oil reserves and translating years of exploration into export revenues.

Oil is central to the country’s Vision 2040, which aims to expand the economy from about 40 billion US dollars to 500 billion US dollars.

Dr Nankabirwa said the oil transportation sector alone is expected to play a decisive role, with pipeline transport costs projected at about 12.77 US dollars per barrel, improving the competitiveness of Uganda’s crude on global markets.

“This infrastructure is not only about exports,” she said.

“It is about industrialisation, skills development and long-term economic transformation.”

Benefits beyond borders

Tanzania is expected to benefit through transit fees, port activity, logistics services and expanded regional trade, reinforcing its role as a key energy and transport hub in East Africa.

The shared infrastructure is also expected to deepen regional integration, with workforce development programmes training citizens from both countries in specialised energy and transportation skills.

Despite its economic promise, EACOP has faced criticism from environmental groups concerned about climate change and ecological risks. Project sponsors, however, argue that strict environmental and social safeguards are in place and that oil revenues will help finance broader development and energy transition goals.

Countdown to first oil

As commissioning approaches, attention is turning to upstream readiness, global oil price conditions and the timely completion of supporting infrastructure. Still, officials remain confident the timeline will hold.

If successful, the first shipment of crude in October 2026 will mark the culmination of nearly two decades of planning and the beginning of a new chapter for Uganda’s energy sector and Tanzania’s strategic role in regional oil exports.