Uganda’s contentious £4 billion heated oil pipeline project remains on track for a 2027 operational launch, despite facing significant delays attributed to environmental activism and financing challenges, according to the country’s energy minister Ruth Nankabirwa.
Speaking at the COP29 climate summit in Baku, Azerbaijan, Nankabirwa emphasised the project’s viability, stating that substantial investments have already been made in exploration and critical infrastructure. The 1,443-kilometre pipeline, set to be the world’s longest heated oil conduit, will transport crude from Uganda through Tanzania to the port of Tanga.
The development, spearheaded by TotalEnergies and China’s Cnooc, alongside Ugandan and Tanzanian national oil companies, has commenced drilling operations at both the Kingfisher and Tilenga fields near Lake Albert. Upon completion, Uganda expects to produce 230,000 barrels daily, surpassing current Opec member Gabon’s output.
The project’s financing structure has undergone revision, with the equity-debt ratio shifting from 40/60 to 52/48. The Export-Import Bank of China is anticipated to lead the debt financing arrangement, following Standard Chartered’s withdrawal last year amidst mounting environmental protests.
Environmental organisations have raised significant concerns about the pipeline’s impact on nature reserves and local communities along the Lake Victoria basin. The International Federation for Human Rights has documented 81 arrests related to project protests since May, highlighting growing tensions between development aspirations and environmental preservation.
Minister Nankabirwa defended the project’s necessity for Uganda’s economic development whilst acknowledging climate change concerns. The venture represents a critical junction in Africa’s energy dialogue, as nations balance economic growth through fossil fuel exploitation against environmental responsibilities
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.