East African Crude Oil Pipeline(EACOP) Ltd at the beginning of July applied for a construction license from the governments of Uganda and Tanzania.
The Energy
Minister, Ruth Nankabirwa has commenced the process that will lead to the award
of a construction license for the East Africa Crude Oil Pipeline (EACOP).
East African Crude Oil Pipeline(EACOP) Ltd at the beginning of July applied for
a construction license from the governments of Uganda and Tanzania.
Section 12 of the Petroleum (refining, conversion Transmission, and storage)
Act requires the government to carry out public hearings on such projects before
a decision is taken on whether allow the construction. Nankabirwa on
Friday gazetted the notice for application license East African Crude Oil
Pipeline(EACOP) Ltd.
The notice according to Nankabirwa applies to about 296 kilometers of the
pipeline on the Uganda side starting from Kabale in Hoima up to Mutukula border
with Tanzania.
Nankabirwa’s notice was also in compliance with the East Africa Crude Oil
Pipeline(EACOP) Special Provisions Act 2021. The underground heated
pipeline EACOP will traverse the districts of Hoima, Kikuube, Kakumiro,
Kyankwanzi, Gomba, Mubende, Lwengo, Sembabule, Kyotera, and Rakai in Uganda. It
is expected to cost about US$3.6bn.
According to Nankabirwa, directly affected parties and local authorities in the
areas set to host the pipeline who object to the grants of the license for the
construction of the pipeline whether for personal or environmental or other
reasons have thirty days to lodge an objection to her office.
The law gives the Ministry up to 180 days to take a decision to issue or reject
the issuance of the construction license.
Honey Malinga, Director of the Directorate of Petroleum at the Ministry of
Energy and Mineral Development says that they expect to come up with a decision
before the end of the year.
According to Malinga, a number of public hearings will be carried out in the
districts where the pipeline will traverse.
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Asked whether there is a possibility of the Ministry of Energy rejecting the
award of the construction license, Malinga said it will depend on the issues
that will come out of the public hearing.
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The National Environment Management Authority in early December 2020 approved
the Environment, Social Impact Assessment report and awarded a certificate for
the EACOP project.
Similar
approvals had been made by the Authorities in Tanzanian I which will host the
largest part of the pipeline.
The Director General of Energy and Water Utilities Regulatory Authority (EWURA)
of Tanzania, Modestus Martin Lumato was recently in Uganda and his team and visited
some of the places where the pipeline will be laid.
The Director
of Petroleum at EWURA, Eng. Gerald Maganga promised to expedite the process of
approval of the construction license from the Tanzanian side.
The planned construction of the
East Africa
Crude Oil Pipeline
has attracted intense criticism by environmentalists alleging that it will
hamper the natural ecosystem and may degrade the ecological balance of nature.
They have also alleged that it is likely to displace people from their
ancestral land. But the government is going ahead as part of the infrastructure
for monetization of the Albertine Oil and gas finds. The value of oil and gas
assets in Uganda is estimated at $116b.
The planned pipeline is similar to the one constricted by Carin-Energy in India.
The Cairn India’s 684 Km long heated insulated pipeline for crude
transportation from the Thar deserts of Rajasthan to the Gujarat coast passes
through 270 villages and 34 major rivers. Edinburgh-based Cairn, which
previously had to move oil to the refineries by truck, will now be able to sell
through the pipeline.
The EACOP construction will be led by China Petroleum Pipeline
Engineering and coordinated by Australia’s WorleyParsons Ltd. WorleyParsons
Ltd was awarded the Engineering, Procurement, and Construction Management
tender.
