Uganda to Commence Works on Oil Pipeline in 2021, To Cost UGX13.2Trn

Nairobi/Kampala/Tanga | AGENCIES – Uganda expects to commence the construction of its oil export pipeline in the first half of 2021.

The pipeline will link Uganda oil fields to Tanzania’s Tanga port.

Minister of Energy and Mineral Development (MEMD), Hon. Dr. Mary Goretti Kitutu,revealed that Uganda will spend $3.5 billion on the project.

Bloomberg reports that the construction of the 1,445 kilometer pipeline is projected to take three years and will export 216,000 barrels a day at peak production.

The project is a collaboration between Total SA, Chinese firm Cnoonc Ltd, Tanzania, and Uganda.

Hon. Kitutu also revealed that she expects the final investment decision to be made by the end of June next year.

The African Development Bank (AfDB) has granted $1 million to the East African Crude Oil Pipeline (Eacop) project to be shared equally among Uganda ($500K) and Tanzania ($500K).

The grant will boost micro, small, and medium enterprises (MSMEs) by enabling them to access new market opportunities and building linkages with regional and international companies.

AfDB says that it targets at least 100 local micro-business in Uganda and Tanzania to do business on the pipeline project creating job opportunities for about 500 people.  

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