EACOP vs Lamu pipeline

EACOP vs Lamu pipeline

Regulator fears oil spills as pipeline systems take shape​


By Guardian Correspondent , The Guardian
Published at 06:01 AM Mar 18 2025

Oil spills

Photo: File
Oil spills
WITH the construction of the East African Crude Oil Pipeline (EACOP) nearing completion, oil storage tanks already in place and oil fields allocated for the project, stakeholders in the region are raising awareness about risks tied with the developments.

Leticia Mutaki, the Tanzania Shipping Agencies Corporation (TASAC), the director of safety, security and environmental protection, took stock of the situation at a workshop held here yesterday, underscoring the need for preparedness in the event of an oil spill

The workshop brought together stakeholders from marine industries and communities along the coastline, with the director indicating that the agency is implementing a national oil spill response plan to safeguard the marine environment.

Regional Commissioner Dr Batilda Buriani noted that the port of Tanga at the Chongoleani area will soon start serving as the main gateway for transporting crude oil from Uganda, infrastructure that is critical for energy sector development, but also increasing the risk of oil spills.

“This makes it imperative that we prepare for such emergencies,” she said, with the director underlining that TASAC is committed to overseeing the safety of all vessels operating in Tanzanian waters.

It seeks to ensure that they meet environmental standards and prevent harm to marine life and resources, as marine life along the coastline faces the pollution threat in case of oil spills, she stated.

Oil spills along the seashore and lakeshores are a recognised threat that could have far-reaching consequences, disrupting the livelihoods of local fishermen and communities relying on marine resources, she said.

The RC was emphatic that pollution has devastating effects on aquatic ecosystems, spoiling conditions for marine wildlife, contaminating beaches and threatening the tourism sector, coastal infrastructure and fisheries, thus posing the risk for significant economic losses.

“The threat posed by oil spills is real, with a devastating impact on marine life and livelihoods. If we do not act now, we risk losing precious marine species and the industries that rely on them,” she emphasised.

“The workshop is critical for building awareness and preparedness among all stakeholders, especially as Tanga relies heavily on marine resources, including seaweed farming. An oil spill emergency would require swift, coordinated action,” she declared.

Training and equipping stakeholders, particularly local communities to respond effectively to oil spill incidents is vital, she said, commending TASAC for educational initiatives and distributing emergency response equipment, since raising awareness and ensuring adequate resources to handle emergencies if they arise is essential.

The director stated that TASAC has established a dedicated oil spill response team in Tanga, to address potential incidents linked to the EACOP project, “such that in the event of an oil spill, this specialized team will be ready to respond and mitigate any environmental damage.”

Abubakar Ally, representing the Zanzibar Ports Corporation (ZPC), praised TASAC for its proactive approach in training maritime stakeholders and local residents, citing the positive outcomes already observed in the region.

“The training provided by TASAC has proven to be invaluable in preparing local communities to respond to emergencies effectively,” he asserted.

 

Uganda's $5 billion EACOP pipeline gets funding boost​

By Reuters
March 26, 20256:37 PM GMT+1Updated 2 days ago

CAPE TOWN, March 26 (Reuters) - The company developing Uganda’s EACOP crude pipeline has closed the first allocation of external financing from a syndicate of institutions including commercial banks and Afreximbank, a statement from EACOP Ltd said on Wednesday.

Among the financiers are Standard Bank (SBKJ.J), opens new tab, Stanbic Bank Uganda, KCB Bank Uganda and Saudi Arabia's Islamic Corporation for the Development of the Private Sector.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

"The successful closing of this first tranche represents a significant milestone," the statement said. It did not provide a value for the financial backing.

In October, Uganda's energy minister told Reuters that partners developing the $5 billion East African Crude Oil Pipeline (EACOP) were injecting more cash into the project to prevent it stalling as debt financing proved elusive.

Minister Ruth Nankabirwa had travelled to Beijing to meet with potential Chinese funders, seen as crucial for the success of EACOP after several Western banks, including BNP Paribas, Société Generale and Barclays, pledged not to finance the pipeline under pressure from climate activists.

Linking oilfields in Uganda to Tanga port in Tanzania, EACOP is part of a broader $15 billion energy plan by TotalEnergies (TTEF.PA), opens new tab, China's CNOOC and other partners to develop the Kingfisher and Tilenga discoveries close to Lake Albert.

A source briefed on the financing arrangement told Reuters on Wednesday that financiers are committed to fund the entire $5 billion project, with Chinese backing also secured.

"Oil companies that are already involved will take both equity and debt. The Chinese are in," the source said.

Reporting by Wendell Roelf; Editing by Kirsten Donovan
Our Standards: The Thomson Reuters Trust Principles.

MY TAKE
So KCB Bank Uganda is part of financiers?
 
 

Similar Discussions

Back
Top Bottom