The East African Crude Oil Pipeline (EACOP) is now 70% complete and on track for commissioning by July 2026, according to Tanzania Petroleum Development Corporation (TPDC) Board Chairman Ambassador Ombeni Sefue.

Speaking after an inspection of the Chongoleani Terminal in Tanga, Sefue said the $5bn, 1,443-km pipeline has “overcome financing and environmental challenges” that had slowed earlier progress, Tanzania Daily News reported on October 12. He confirmed that 65.6% of welding — equivalent to 946 km — has been completed, with remaining sections advancing steadily.

EACOP is a heated export line designed to transport up to 230,000 barrels per day (bpd) of crude from Uganda’s Lake Albert basin to Tanzania’s Indian Ocean port of Tanga, complementing Uganda’s $4bn Hoima refinery, slated to start operations in 2029–30. It forms part of the region’s first integrated cross-border oil network. Construction began in 2021.

China Exim Bank and Standard Bank Group stepped in to help finance the project after several Western lenders withdrew in 2023–24 under environmental, social, and governance (ESG) pressure.

Sefue praised the resilience of the project partners — TotalEnergies (62%), China National Offshore Oil Corporation (8%), Tanzania Petroleum Development Corporation (15%), and Uganda National Oil Company (15%) — for maintaining momentum amid shifting global financial conditions.

“Despite the opposition, the project has secured full financing and remains firmly on track for completion,” he is quoted as saying.

EACOP sits within Tanzania’s broader $50bn infrastructure investment programme, which includes port modernisation, power generation and rail projects aimed at boosting logistics competitiveness. Economists at the African Development Bank (AfDB) estimate that EACOP and its associated developments could add up to 1.2 percentage points to Tanzania’s GDP once operational.

The project is being built in parallel with Uganda’s Tilenga and Kingfisher upstream oil fields, creating the region’s first integrated cross-border crude export network. Officials have also suggested that EACOP could, in the long term, connect to Zanzibar’s offshore prospects and Mozambique’s LNG terminals, strengthening East Africa’s energy corridor.

In response to environmental concerns, TotalEnergies has pledged a biodiversity offset ratio of 1.5:1 and investment in community resilience projects—including reforestation, water access, and electrification schemes—under a monitored framework co-supervised by the AfDB and the East African Community (EAC) Secretariat, which are responsible for environmental and social and monitoring; their formal progress reports are expected later in 2025.

Legal challenges filed in France and Uganda between 2022 and 2024 were largely dismissed — the Paris Civil Court rejected the main ESG lawsuit in February 2024, while Uganda’s High Court dismissed a similar petition in May 2024 — though appeals remain pending in both jurisdictions.

Sefue said the pipeline has already generated TZS70bn (about $26.1mn) in government revenue through taxes and fees, with total earnings projected to exceed TZS2 trillion (about $745mn) once operational. TPDC data show that 99.4% of affected households (9,869 of 9,927) have been compensated, totalling TZS35.06bn (about $13.1mn), while 43 modern replacement homes have been built for displaced families.

“EACOP represents Africa’s determination to manage its natural resources responsibly while driving economic growth,” Sefue said, as quoted by Tanzania Daily News, adding that the project will reinforce regional cooperation and enhance Tanzania’s position as an oil-export hub for East Africa.

Meanwhile, Uganda’s $4bn Hoima refinery, originally slated for commissioning in 2027, is now expected to begin operations in late 2029 or 2030, according to the general manager of the Uganda Refinery Holding Co., Michael Nkambo Mugerwa.

The Hoima refinery is designed to process part of Uganda’s Lake Albert crude for domestic and regional markets, while EACOP will channel the remainder to global buyers via Tanzania’s coast. Together, the two projects form a vertically integrated energy corridor — linking upstream fields (Tilenga and Kingfisher) with both export and refining capacity. This dual system aims to strengthen regional energy security, reduce petroleum imports, and create a sustainable crude-to-products value chain under AfDB and EAC oversight.