East African Crude Oil Pipeline (EACOP)
Pipeline construction advances despite delays: While an early-September commissioning was postponed by at least three months, construction of the EACOP is progressing. As of early September, the pipeline’s overall completion reached 66.5%, with significant progress on welding, pipe coating, and burial.
The project continues to face financing hurdles due to resistance from international banks over environmental and human rights concerns. The estimated cost has increased from $5 billion to $5.8 billion.
A new legal challenge was filed in early September by activist organizations aiming to block the pipeline’s construction. Opponents hope the case will lead to a trial and a potential injunction against the project.
The Ugandan Ministry of Finance announced in mid-September that it now expects crude oil production to begin around mid-2026, with output projected to peak at 230,000 barrels per day. This is a revision from earlier government projections that targeted a 2025 start.
Following an agreement signed in March 2025 with UAE-based firm Alpha MBM Investments, construction of the planned $4 billion oil refinery is proceeding.
The government and Alpha MBM Investments project that the 60,000 barrels-per-day refinery will create 15,000 local jobs and significantly reduce Uganda’s dependence on fuel imports.
A GlobalData Energy report published on September 15 projected that Uganda will lead Africa in liquid storage capacity additions by 2030, thanks to the upcoming Buloba terminal. The terminal is expected to have a capacity of 25.2 million barrels to store refined petroleum products.
