KAHAME – TANZANIA , Tuesday 26th March 2024: Uganda and Tanzania have registered yet another key milestone following the commissioning of the East African Crude Oil Pipeline (EACOP) Coating plant, nestled at Sojo , Nzege – Tabora Region in Tanzania.
Dr Ruth Nankabirwa, the Minister of Energy and Mineral Development and her counterpart Dr Doto Biteko, the Deputy Prime Minister and Minister of Energy, United Republic of Tanzania commissioned the facility, which is where all the pipelines delivered from the Port of Dar es Salaam will undergo thermal insulation and coating. Thereafter, they will be transported to the different Main Camps and Pipe Yards (MCYP) along the pipeline corridor ready for use in the construction of the EACOP.
Dr Nankabirwa commended EACOP Company for remaining committed to the development of the EACOP Project since the announcement of the Final Investment Decision (FID) for the upstream projects as well as the EACOP in February 2022.
“Today’s commissioning of this plant is a true testament that the project is on course and at a point of no return,” Nankabirwa said.
As showcased in the design of the coating plant, all project pipes will be installed with aluminium raceways, an insulation layer, Polyurethane foam (PUF), an anti-diffusion barrier and high-density polyethylene (HDPE) before distribution to the different lots across the 1,443KM EACOP line.
“All this is aimed at safeguarding the environment and surroundings as well as prolonging the life span of the pipeline,” Nankabirwa added.
She added: “Works on the upstream projects in Uganda namely Tilenga and Kingfisher Development Areas are also progressing very well with four (4) rigs in the country drilling development wells and construction of the industrial area to host the Central Processing Facilities and their auxiliary parts”.
At the same event, the EACOP Company and the Tanzania Petroleum Development Corporation (TPDC) signed three Land use and Ports Agreements. These included the Lease Agreement for land for construction of the Main Storage Terminal, the Marine Facility Agreement, and the Marine Use Agreement.
Dr Biteko, revealed that compensation of the Project Affected Persons (PAPs) had progressed well thus far, with works for the construction of the four tank Main Storage Terminals at Chongoleani, Tanga all currently underway.
“You the people of Tabora region are lucky because the pipeline coating yard is at the centre of the EACOP, 700KM apart from Hoima and from Tanga. You should therefore celebrate this milestone and ensure that you harness the opportunities this plant is bringing here,” Dr Biteko emphasised.
Mr Martin Tiffen, the Managing Director EACOP Company revealed that the Thermal Insulation and Coating Plant not only signifies technological advancement but also creates numerous employment opportunities within the region.
During the construction phase, a total of 500 personnel on site were employed. During the production phase, 270 workers will be involved in front line site activities, including running the thermal insulation production lines, pipe handling, logistics, maintenance, and inspection.
The coating yard has to date received three batches of pipelines totalling to 300km.
“We have two batches that are arriving at Dar es Salaam and by this time next year, all the 1,443KM pipelines will be here with us and all works insulation works are progressing as scheduled,” Tiffen revealed.
Mr Dozith Abeinomugisha, the Director Midstream at the Petroleum Authority of Uganda (PAU), said the Authority is undertaking joint monitoring and regulation with its counterpart, Energy and Water Utilities Regulatory Authority (EWURA), Tanzania to ensure that aspects relating to all the licences given to the EACOP company are adhered to.
“The EACOP Company has received its construction licenses from both Governments of Uganda and Tanzania and civil works are ongoing in both countries, we have to jointly monitor closely to ensure all the guidelines and regulations are followed,” Mr Abeinomugisha said.
The EACOP Company, whose shareholders include TotalEnergies BV (62%), CNOOC Uganda Limited (8%), TPDC (15%), and the Uganda National Oil Company (UNOC) (15%), is constructing the 1,443KM conduit to transport Uganda’s waxy crude from Hoima, Uganda, to Tanga Port, Tanzania, for export to the international market.