TotalEnergies' Tanzania Pipeline Project Cost Soars to $5.6 Billion

The cost of the East African crude oil pipeline project, led by TotalEnergies, has increased to $5.6B, according to a Tanzania government official. The 1,443 km pipeline aims to transport crude oil from Uganda to Tanzania's coast. The project's total cost has risen significantly, with no further details provided on the reasons for the increase.

The cost of the East African Crude Oil Pipeline (EACOP) project, led by TotalEnergies, has increased to $5.6 billion, according to a Tanzania government official [1]. The 1,443 km pipeline aims to transport crude oil from Uganda to Tanzania's coast, a significant infrastructure project designed to unlock economic opportunities for both countries.

The EACOP, also known as the Uganda-Tanzania Crude Oil Pipeline, was initially valued at $5 billion. However, the total cost has risen significantly, with no further details provided on the reasons for the increase. The project, which began construction in 2023, is currently 65% complete and is expected to reach 100% completion by early 2026 [2].

The pipeline is designed to transport crude oil from the Tilenga and Kingfisher oilfields in Uganda’s Lake Albert region to the port of Tanga in Tanzania for export. Key infrastructure includes six pumping stations, a storage terminal, and a loading jetty in Tanga. The pipeline is heated and insulated due to the viscous nature of Uganda’s crude oil, making it the world’s longest electrically heated crude oil pipeline.

The project is expected to generate substantial economic benefits. It could potentially generate $1.5–$3.5 billion annually for Uganda, representing 30–75% of its annual tax revenue. Additionally, it could generate approximately $1 billion per year for Tanzania through transit fees [2].

Despite the increased cost, the EACOP remains a critical infrastructure project for both Uganda and Tanzania. The project aims to facilitate the transportation of crude oil to international markets, enhancing regional economic development and energy security.

References:
[1] https://seekingalpha.com/news/4473415-totalenergies-tanzania-pipeline-project-cost-climbs-to-56b---report
[2] https://www.facebook.com/OpenAndWide/posts/the-uganda-tanzania-oil-pipeline-1-the-east-african-crude-oil-pipeline-eacop-is-/1107794471404329/