International
Tanzania and Uganda are about to build an East African oil pipeline
Seetao 2022-11-02 14:48
  • Uganda already gets 92 per cent of its energy from renewable sources, and in Tanzania it is about 84 per cent
  • The pipeline will be about 1,440 kilometers long, 80 percent of which will be in Tanzania
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The Tanzania Petroleum Development Cooperation Company is about to start construction of the East African crude oil Pipeline, which will transport crude oil from the shores of Lake Albert in western Uganda through Tanzania. Construction of the approximately 1,440 km pipeline, 80 per cent of which will be in Tanzania, will begin in the next few months, including the construction of a terminal storage facility at Chongoleani.

Total Energies, the French energy giant, and CNOOC International of China also have stakes in the $5bn joint venture. Because of the waxy nature of Lake Albert's crude, it will be transported through the world's longest heated pipeline. But only a third of the 6.5bn barrels first discovered in 2006 are considered commercially viable.

In September 2022, the European Union waded into the controversy surrounding the East African crude oil pipeline, calling for its construction to be halted, citing environmental and climate concerns. The governments of Uganda and Tanzania have rejected the intervention, arguing that the pipeline is essential to boost economic development. "They are insufferable, they are shallow, they are self-centered, they are wrong," Ugandan President Yoweri Museveni said of the European Union.

Some advocates of African economic development also argue that the continent has a right to use its abundant fossil fuels to develop, as rich countries have done for centuries. They note that Africa emits only 3 percent of greenhouse gases, compared with 17 percent in the European Union. Crucially, 92% of Uganda's energy already comes from renewable sources. In Tanzania, the figure is about 84 percent. That compares with 22 percent in the European Union, according to the International Renewable Energy Agency.

Elison Karuhanga, a member of the Uganda Chamber of Mines and Petroleum, said of the European Union's criticism of the pipeline, "It's hypocritical. We are different from rich countries in that they will remain rich even if oil and gas revenues decrease, but we cannot afford not to think about the future of Ugandans for generations."

Total, which owns 62 per cent of the Eacop pipeline, said the project would be "one of the lowest levels of carbon dioxide emissions for the company". "The pipeline is designed to minimize its impact on the landscape and biodiversity and will significantly improve local living conditions," the French oil giant said.

The first oil is expected to be extracted within the next three years, at a peak of at least 230,000 barrels a day, and is expected to bring Uganda between $1.5 billion and $3.5 billion a year, or 30-75% of its annual tax revenue. Tanzania will reportedly get at least $12 a barrel, totaling $1 billion a year. Editor/Xu Shengpeng


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