The East African Crude Oil Pipeline (EACOP) project has reached a significant milestone, with 92.7 percent completion achieved. The project, which transports crude oil from Hoima in Uganda to Chongoleani in Tanga, Tanzania, is expected to see its first drop of crude oil reach a pumping station in Uganda in December 2026. From there, the oil will be transported to Chongoleani in Tanga, with arrival expected in February 2027.
The Tanzanian Government, through the Tanzania Petroleum Development Corporation (TPDC), owns a 15 percent stake in the EACOP project. TPDC Managing Director, Mussa Makame, provided an update on the project's progress, highlighting its potential impact on the country's economy and development. The project has created substantial employment opportunities, with 10,000 jobs generated during the construction phase.
A significant proportion of jobs created during the construction phase have benefited Tanzanians, with 7,500 jobs, equivalent to 75 percent, going to local citizens. Additionally, over 200 Tanzanian companies have been awarded contracts to supply goods and services worth more than 1.325 trillion Tanzanian shillings. This influx of investment is expected to have a positive impact on the local economy.
The implementation of the EACOP project has also generated substantial revenue for the Tanzanian government, with over 100 billion Tanzanian shillings collected through taxes, fees, duties, and various levies. The project is also supporting corporate social responsibility initiatives in key sectors such as water, health, education, and the environment.
One notable initiative is a water project worth approximately 4.4 billion Tanzanian shillings, which is benefiting more than 26,000 people. Such initiatives demonstrate the project's commitment to supporting local communities and contributing to Tanzania's socio-economic development.
Once the crude oil reaches Chongoleani in Tanga in February 2027, it will be stored in four tanks with a combined capacity of two million barrels. The loading of the first consignment of crude oil onto a tanker is expected to begin in March 2027, marking the completion of the construction phase and the start of the project's operational phase.
The successful completion of the EACOP project is expected to have a transformative impact on Tanzania's economy and energy sector. With the first drop of crude oil expected in early 2027, the country is poised to reap the benefits of this significant investment. Key stakeholders will be watching closely as the project moves into its operational phase.
Key points
- The EACOP project has reached 92.7 percent completion, with the first drop of crude oil expected in Tanga, Tanzania in early 2027.
- The project has created 10,000 jobs during the construction phase, with 75 percent benefiting Tanzanians.
- The project is expected to generate significant revenue for the Tanzanian government through taxes, fees, duties, and levies.
