By Business Insider Reporter
Uganda and Tanzania have confirmed that the export of crude oil via the East African Crude Oil Pipeline (EACOP) is scheduled to begin in October 2026, marking a significant milestone in East Africa’s energy landscape and offering new economic opportunities for both countries.
Media reports have quoted officials from both governments saying the mega-infrastructure project is on track, with construction now about 79 percent complete as of the end of December 2025.
The East African Crude Oil Pipeline – a 1,443-kilometre heated pipeline connecting Uganda’s Lake Albert oilfields in the west to the Tanga Marine Terminal on Tanzania’s Indian Ocean coast – is poised to become one of the region’s most transformational energy export corridors. With an export capacity of up to 246,000 barrels per day, the pipeline is expected to open Uganda’s landlocked oil sector to global markets.
Project status and timeline
According to the media reports, at a high-level stakeholder meeting held in Dar es Salaam on January 5, officials representing both governments reaffirmed the agreed timeline for commissioning the pipeline, with technical readiness expected by 31 July 2026 and first oil exports to begin in October 2026.
Construction, which remains at peak levels, includes ongoing pipeline welding, insulation, above-ground installations and development of the export terminal at Chongoleani, Tanga.
Uganda’s delegation was led by Energy Minister Dr. Ruth Nankabirwa, while Tanzania’s team was headed by Energy Minister Deogratius Ndejembi. Both underscored the strategic importance of EACOP and the smooth partnership between the two countries in driving progress.
Economic and strategic importance
The pipeline represents more than an oil export route. It is a bridge to economic transformation for both nations.
Uganda, poised to become a new oil producer, finally has infrastructure to monetise its Lake Albert crude, discovered decades ago but held back by lack of export options.
Tanzania, hosting over 80 percent of the pipeline’s length, stands to benefit from transit fees, jobs, skills transfer and ancillary infrastructure development. The pipeline also brings secondary infrastructure such as new roads, power lines, fibre-optic connectivity and marine terminal facilities that could be repurposed for other commercial uses.
For Tanzania, the project aligns with broader economic goals such as boosting export earnings, expanding its energy sector base and attracting further investments into oil, gas and industrial clusters along the pipeline corridor.
Regional integration and partnerships
EACOP is widely seen as a landmark of regional integration, binding Uganda’s upstream production with Tanzania’s export capacity. The project structure reflects shared ownership among key stakeholders, with TotalEnergies holding the largest share, alongside significant participation by the Uganda National Oil Company (UNOC) and the Tanzania Petroleum Development Corporation (TPDC).
The successful closing of the first external financing tranche in March 2025, backed by a syndicate of African and international banks including Afreximbank, Standard Bank and KCB Bank, points to investor confidence in the project’s viability, despite challenges in global fossil fuel financing.
Local content and employment
The pipeline project has already become a major employer and skills developer in the region. Thousands of East African workers are directly engaged in construction, logistics, welding and site operations, while local small and medium enterprises (SMEs) have secured contracts in transport, hospitality and support services along the route. This local content emphasis aligns with Tanzania’s policy priorities, where large infrastructure projects are expected to generate tangible benefits for communities, build local capability and create long-term supply chains in industries such as energy services and maintenance.
