Uganda's Oil Pipeline Project Enters Critical 12-Month Push for 2026 Launch

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Uganda's Oil Pipeline Project Enters Critical 12-Month Push for 2026 Launch

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National flag of Uganda (© Shutterstock/Akshay Dhameliya)
National flag of Uganda (© Shutterstock/Akshay Dhameliya)

Uganda's ambition to become an oil exporter by the second half of 2026 is gaining momentum as the East African Crude Oil Pipeline (EACOP) project enters its last 12-month sprint. 

Engineers involved in the 1,443-kilometer pipeline, designed to transport crude from Uganda's Albertine Graben to Tanzania's Tanga port, anticipate that all pipeline and support infrastructure will be complete by mid-2026.

The project has faced a series of setbacks, including the withdrawal of initial financiers and insurance companies, pushing back its initial timelines for oil production, which was discovered two decades ago. Despite these delays, first oil sales are now firmly targeted for next year, exactly two decades after Uganda discovered 6.5 billion barrels of commercially viable reserves.

With the implementation efforts ramped up, EACOP aims to complete a significant 75-kilometer stretch of 24-inch pipes, connecting the Waiga River near Lake Albert to the Kabalega Industrial Park (KIP) in Hoima by the end of this year. 

This section is a vital link between EACOP's Pump Station 1 (PS-1) and the Tilenga oilfield, a 190,000 barrels per day (bpd) upstream project.

Hadi Watfa, EACOP's Lot-1 project manager, confirmed last week that overall concrete and infrastructure progress at the PS-1 site stands at 67%, with civil works, a significant time consumer, nearing completion. 

"June next year is the milestone," Watfa stated, echoing EACOP Managing Director Guillaume Dulout's earlier projection of Ugandan oil flowing by 2026.

The Chinese-managed Kingfisher oilfield, a 40,000 bpd project located southwest of Tilenga, is notably ahead of schedule with its 50-kilometer feeder pipeline to PS-1 already 95% complete and buried, pending direct connection to PS-1.

Pump Station 1, the largest of the stations, will be critical for metering and commingling crude from both Tilenga and Kingfisher fields before a 40-tonne pump propels it further along the pipeline. 

With a total spend of $3.6 billion so far, the project is navigating topographical challenges, including 600 crossings of wetlands, rivers, and roads, and significant elevation changes. This necessitates bending thousands of thermally insulated 24-inch pipes to meet design specifications. 

Shafiq Mohamad, a mechanical quality control engineer, noted that while 500 bends have been completed, 2,000 to 3,000 more are required for the Ugandan section due to its elevated terrain.

The project received a significant boost in March with a $1 billion syndicated loan from local and regional lenders, including Stanbic Bank and KCB Bank, following delays caused by local and international activism that had led to TotalEnergies and its partners providing additional equity financing.

Moses Kirumira, EACOP deputy construction engineer for Lot-1, expressed confidence in burying the Tilenga feeder pipeline by year-end, citing only the Waiga River and potential rains as minor challenges.

Meanwhile, China Petroleum Pipeline Engineering Co Ltd (CPP), the contractor for Uganda's 296-kilometer section (Lot-1), reports being ahead of Tanzania in many engineering aspects.