Commercial efforts by Uganda to extract and commercialise her oil and gas resources received a major boost this week as the East African Crude Oil Pipeline (EACOP) Ltd on 26th of March 2024 inaugurated its Thermal Insulation Plant (TIS Plant).
The East African Crude Oil Pipeline is a 1,443km crude oil export infrastructure that will transport Uganda’s crude oil from Kabaale – Hoima in Uganda to the Chongoleani peninsula near Tanga in Tanzania for export to the international market. This major export system includes 1,443 km (296 km in Uganda and 1147km in Tanzania) of insulated and buried 24” inch pipeline, 6 pumping stations, two pressure reduction stations and a marine export terminal in Tanzania.
EACOP Ltd is a special-purpose company running the pipeline. Its shareholders are TotalEnergies (62%), Uganda National Oil Company- UNOC( 15%), Tanzania Petroleum Development Corporation- TPDC (15%) and CNOOC (8%).
Located at Sojo, Nzege in the Tabora Region of Tanzania, midway between Hoima in Uganda and Tanga, in Tanzania, the TIS Plant receives all line pipes to be used on the pipeline in Tanzania and Uganda. The TIS Plant will apply thermal insulation to all 86,000-line pipe joints prior to their dispatch and installation along the route from Uganda to Tanzania. All project pipes will be installed with aluminium raceways, an insulation layer, Polyurethane foam (PUF), an anti-diffusion barrier and high-density polyethylene (HDPE) before distribution to the different lots across the 1,443KM EACOP line.
The purpose of the insulation is similar to a thermos flask – it retains the warmth of the fluid inside the pipe whilst simultaneously keeping the external environment cool. This particular design is aimed at protecting the environment on the outside while enabling the fluidity of the waxy crude oil that wouldn’t otherwise flow at room temperature.
The TIS Plant has been constructed and is operated by one of EACOP Ltd’s Level One Contractors, WASCO ISOAF Tanzania Limited, which is a joint venture of local and foreign companies.
Following the inauguration,, the TIS Plant/workshop is expected to ramp up production, reaching a capacity of 110- 117 kilometres of insulated line pipe per month. Production is slated to commence immediately and continue into 2025.
Concurrent with the inauguration of the TIS plant, was the official signing of land lease and ports agreements between the East African Crude Oil Pipeline (EACOP) and Tanzania Petroleum Development Corporation (TPDC). These included the Lease Agreement for land for the construction of the Main Storage Terminal, the Marine Facility Agreement, and the Marine Use Agreement.
The land leases and the production of thermally insulated pipe are two key precursors for construction activities starting along the right of way.
Shared commitment to strengthening energy security and promoting regional cooperation
The inauguration was graced by key government officials from Uganda and Tanzania that included Ministers, Members of Parliament, High Commissioners and Permanent Secretaries. Also present, were EACOP Management and Contractors.
Hon. Dr. Doto Mashaka Biteko (MP), the Deputy Prime Minister and Minister for Energy, United Republic of Tanzania officiated the event together with Ruth Nankabirwa, the Ugandan Minister of Energy & Mineral Development (MEMD).
In a statement, EACOP Ltd said that the “establishment of this Plant not only signifies technological advancement but also creates numerous employment opportunities within the region”.
During the construction phase, a total of 500 personnel on site were employed and during the production phase, 270 workers will be involved in front-line site activities, including running the thermal insulation production lines, pipe handling, logistics, maintenance and inspection.The remaining personnel will be involved in supporting activities spanning various fields such as catering, camp operation, security and administration.
Commenting on the development, Hon. Dr. Doto Mashaka Biteko (MP), Deputy Prime Minister and Minister for Energy, Ministry of Energy, United Republic of Tanzania said: We are proud to inaugurate the Thermal Insulation Workshop, a testament to our dedication to advancing infrastructure capabilities. This workshop will not only facilitate efficient crude oil transportation but also foster economic growth and development within the region.”
Dr Biteko, revealed that compensation of the Project Affected Persons (PAPs) had progressed well thus far, with works for the construction of the four tank Main Storage Terminals at Chongoleani, Tanga all currently underway.
“You the people of Tabora region are lucky because the pipeline coating yard is at the centre of the EACOP, 700 km apart from Hoima and Tanga. You should therefore celebrate this milestone and ensure that you harness the opportunities this plant is bringing here,” Dr Biteko emphasised.
Ruth Nankabirwa, the Minister of Energy & Mineral Development, Uganda said that “the inauguration of the Thermal Insulation Workshop signifies a significant milestone in our collective efforts to strengthen energy infrastructure. This initiative underscores our commitment to enhancing energy security and promoting regional cooperation.”
Commitment to safety, operational excellence and sustainability
Martin Tiffen, EACOP Managing Director, the commissioning of the Thermal Insulation Workshop, was a key milestone “on our journey to construct the infrastructure that will safely transport the oil from Uganda’s Lake Albert region to international markets”.
“The TIS plant embodies our commitment to safety, operational excellence and sustainability, combining talents from Tanzania and internationally, and creating employment and up-skilling opportunities both nationally and for communities in the vicinity,” Mr. Tiffen said.
The coating yard has to date received three batches of pipelines totalling to 300km and according to Tiffen, two more batches of piping are arriving at Dar es Salaam in the coming months.
“By this time next year, all the 1,443 km pipelines will be here with us and all insulation works are progressing as scheduled,” Tiffen revealed.
Mr Dozith Abeinomugisha, the Director of Midstream at the Petroleum Authority of Uganda (PAU), said the Authority is undertaking joint monitoring and regulation with its counterpart, the Energy and Water Utilities Regulatory Authority (EWURA), Tanzania to ensure that aspects relating to all the licences given to the EACOP company are adhered to.
“The EACOP Company has received its construction licenses from both Governments of Uganda and Tanzania and civil works are ongoing in both countries, we have to jointly monitor closely to ensure all the guidelines and regulations are followed,” Mr Abeinomugisha said.