The Uganda–Tanzania Crude Oil Pipeline has generated TSh50 billion (approximately $19.5 million) in revenue for Tanzania through various taxes and levies.
This supports the project’s projection of boosting Foreign Direct Investment (FDI) in both countries by over 60% during the construction phase, according to the official factsheet.
Stretching 1,443 kilometers, it is the world’s longest heated crude oil pipeline and is designed to transport Uganda’s crude from Kabaale-Hoima in western Uganda to the Chongoleani Peninsula near Tanzania’s Tanga Port.
This cross-border infrastructure project is a cornerstone of East Africa’s energy strategy and a catalyst for regional economic transformation.
The heated pipeline is embedded with electrical filaments and fiber-optic cables along its entire length to ensure the safe, efficient flow of crude oil.
The heating system prevents the waxy Ugandan crude from solidifying, while the fiber-optic network supports real-time satellite monitoring and leak detection to mitigate environmental risks.
In addition to the export route, Hoima (Uganda) will host a domestic refinery, allowing part of the crude output to be refined for local use while the remainder will be exported via Tanga, integrating the project into global energy markets.
Tanzania eyes revenue, jobs from project
The East African Crude Oil Pipeline (EACOP) is a $5 billion joint venture involving TotalEnergies (62%), Uganda National Oil Corporation (15%), Tanzania Petroleum Development Corporation (15%), and China National Offshore Oil Corporation (8%).
The 1,443-kilometre pipeline, set to be the world’s longest heated crude oil pipeline, has already generated approximately TSh50 billion (about $19.5 million) in revenue for Tanzania through development levies, taxes, and various construction-related charges.
Tanzania’s EACOP Project Coordinator, Mr. Asiadi Mrutu, revealed during a recent televised appearance on TBC1 that the project has so far employed 1,200 Tanzanians, including 346 workers from surrounding communities like Chongoleani.
Tanzania’s Energy Ministry spokesperson Ms. Neema Mbuja expressed satisfaction with the project’s implementation, noting that it is advancing in line with the 2021 agreement.
Despite environmental concerns and financing challenges, the pipeline project remains on course and represents a bold step by Uganda and Tanzania to leverage their energy resources for long-term economic transformation and regional trade integration.
