AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
TotalEnergies' Tanzania Pipeline Project Cost Soars to $5.6 Billion
ByAinvest
Tuesday, Jul 29, 2025 11:23 am ET1min read
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/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet