Uganda’s EACOP oil pipeline gets vital funding from China and Europe, setting stage for 2027 launch despite earlier delays.
Uganda’s ambitious East African Crude Oil Pipeline (EACOP) project has reached a critical milestone after securing major financing, putting the $5 billion development on track for completion by 2027.
Designed to transport crude oil from Uganda’s Lake Albert oilfields to the Tanzanian port of Tanga, the pipeline will be the world’s longest heated crude oil pipeline, stretching 1,443 kilometers.
For years, the project faced funding setbacks due to environmental protests and concerns from Western financial institutions. However, in September 2023, Uganda turned to Chinese financiers, including:
These entities agreed to cover over half of the $3 billion debt component required for EACOP.
“We are at the tail-end of the discussions… By the end of October of this year, we will close the debt component,”
said Irene Bateebe, Permanent Secretary at the Ministry of Energy and Mineral Development.
In a further boost, Uganda’s Energy Minister Ruth Nankabirwa revealed in August 2024 that nine European banks had joined the financing consortium:
“I went to Paris and met Total at their headquarters. They showed me a list of nine European banks that have joined in,”
she said.
Despite initial delays, Uganda remains committed to launching EACOP operations by 2027. Once completed, the pipeline will:
- Transport 230,000 barrels per day
- Link Uganda’s Tilenga and Kingfisher fields to Tanzania’s Tanga port
- Serve as a backbone for East Africa’s oil export economy
The project is a joint venture between regional and global energy giants:
The Ugandan government maintains that EACOP will boost employment, attract foreign investment, and enhance Uganda’s export capacity. Tanzania also stands to benefit through transit revenues and improved infrastructure.
Still, the project faces ongoing opposition from environmental groups. Critics argue that the pipeline poses risks to sensitive ecosystems and could lead to the displacement of communities.
Ugandan authorities have promised strict adherence to international environmental and social standards, and continue stakeholder engagement to address these issues.
As of March 27, 2025, EACOP stands as a symbol of Uganda’s commitment to economic development—even as it grapples with the global demand for climate-conscious growth.
With funding now largely in place, and construction advancing, the project is poised to be a regional game-changer for East Africa’s energy ambitions.
Keywords:
EACOP pipeline Uganda • Uganda oil exports • Chinese oil financing • TotalEnergies Uganda • 2027 oil pipeline launch • Uganda energy sector
