A $5 billion cross-border energy corridor is reshaping regional logistics, trade and oil market participation
East Africa is on the brink of a historic shift in its energy and export landscape as Uganda and Tanzania prepare to ship their first crude oil through the East African Crude Oil Pipeline (EACOP).
After years of planning and construction delays, crude exports from Uganda’s petroleum sector are now expected to begin in October, signaling the region’s formal entry into global oil markets.
Stretching 1,443 kilometres from Uganda’s Albertine Graben to the Indian Ocean port of Tanga in Tanzania, EACOP represents one of the most ambitious energy infrastructure projects ever undertaken in the region.
Officials from both countries confirmed that the $5 billion pipeline was about 75% complete by the end of December 2025, broadly aligning with earlier figures from Uganda’s Petroleum Authority, which reported that nearly three-quarters of the project had been completed by November, with all pipeline segments already laid and $3.3 billion invested.
The strategic importance of the project has been repeatedly emphasised by Uganda’s energy leadership. Ernest Rubondo, chief executive of the Uganda Petroleum Authority, has described EACOP as “the backbone of Uganda’s crude oil exports and a key driver for economic transformation,” underlining the pipeline’s central role in the country’s long-term energy and development plans.
Momentum around the project accelerated earlier this month when energy ministers from Uganda and Tanzania met in Dar es Salaam to assess progress on construction, above-ground installations, and the marine export terminal in Tanga.
With construction now at peak levels, officials are targeting start-up readiness by July 31, 2026, a key milestone that would position East Africa as a new crude-exporting region.
Once operational, EACOP is expected to become the world’s longest heated crude oil pipeline. Designed to transport Uganda’s waxy crude at approximately 50°C, the pipeline will be capable of carrying up to 230,000 barrels per day to the Tanzanian coast, where the oil will be loaded onto tankers for international markets.
For Uganda, this infrastructure is critical to unlocking an estimated 6.5 billion barrels of crude reserves and transitioning from a landlocked producer to a competitive oil exporter.
The economic ripple effects extend well beyond Uganda. Tanzania is emerging as a vital energy transit and logistics hub, with authorities reporting that the project has already generated around 50 billion Tanzanian shillings ($19.5 million) in revenue through levies, taxes, and construction-related charges.
Employment gains are also notable, with about 1,200 Tanzanians reportedly engaged in the project, including workers from communities surrounding the Chongoleani terminal in Tanga.
Despite ongoing criticism from environmental and human rights groups, project partners maintain that EACOP balances development goals with climate considerations.
Developers, including TotalEnergies and China National Offshore Oil Company (CNOOC), have pointed to mitigation measures such as powering most pipeline operations with solar energy as part of broader efforts to manage emissions.
As completion draws closer, EACOP stands as a defining test of East Africa’s ability to deliver complex, cross-border infrastructure.
If successful, it could strengthen regional trade links, boost government revenues, create long-term employment and firmly anchor Uganda and Tanzania within global energy supply chains.