The Environmental Social Impact Assessment (ESIA) report for the US $4bn pipeline running from Uganda to Tanzania has been completed and handed over to the National Environmental Management Authority (NEMA).
NEMA confirmed receiving the report, and said they will commence on the reviewing process to ensure the project doesn’t significantly affect the environment. The report evaluates potential environmental and social risk involved with the projects while giving mitigation measures.
“We can confirm receipt of the ESIA Report for the East African Crude Oil Pipeline (EACOP) Project and our oil and Gas Team will review it in the next set of days,” said NEMA.
East Africa Crude Oil Pipeline (EACOP) contracted the Gulf Interstate Engineers to conduct the study of the pipeline set to run from Kabale-Hoima in Uganda to the Chongoleani peninsula near Tanga Port in Tanzania.
Approval of the 1,445-kilometre pipeline project by NEMA will pave way for its construction which is expected to take at least three years. The project is a joint venture between partners and developers such as Total, China National Offshore Oil Company (CNOOC) and Tullow.
Longest electrically heated oil pipeline in the world
Upon completion, the pipeline is expected to 216,000 barrels of crude oil per day. Due to the viscous and waxy nature of Uganda’s crude oil, the pipeline will need to be heated along the entire route making the East African Oil Pipeline the longest electrically heated oil pipeline in the world.
According to earlier negotiations, Uganda will pay Tanzania US $12.20 per barrel of oil. The joint venture partners are more keen on the crude oil pipeline because exported crude oil gives them more value. Uganda has 1.4 billion barrels of recoverable oil, now expected to come in 2022.
The inter-governmental project is bound to create 10,000 jobs for the host communities during construction and benefit the host countries through revenues and taxes. Funding for the project will be made through project finance agreement where banks and financial institutions are expected to finance 70% of the cost while the Ugandan and Tanzania government alongside stakeholders would finance the remainder.