Panyu Chu Kong (PCK) Steel Pipe has announced its readiness to deliver the first 100 kilometers of the “Smart Crude oil pipeline.” These pipes are a crucial component of the East African Crude Oil Pipeline (EACOP) project, which will facilitate the transportation of Ugandan oil from Hoima to the Port of Tanga in Tanzania.
PCK President Xie Leshan expressed the company’s commitment to ensuring timely delivery and high-quality pipes during a meeting with a delegation from the Petroleum Authority of Uganda (PAU), led by Executive Director Ernest Rubondo. The first batch of pipes is currently in the process of being delivered to the port of Tanga, Tanzania.
China’s involvement in the EACOP project has been confirmed by PCK’s announcement, emphasizing the significant role that China and Chinese firms are expected to play in the pipeline’s construction. Some Western financial institutions and insurance firms had withdrawn from funding the project.
The key players in the EACOP project include CNOOC Uganda Limited, TotalEnergies EP Uganda, Tanzania Petroleum Development Corporation (TPDC), and the Uganda National Oil Company (UNOC).
Ernest Rubondo, the Executive Director of PAU, highlighted the readiness of the first 100 kilometers of pipes as a testament to the commitment of both the Ugandan government and oil companies to deliver the “First Oil.” He also attributed these achievements to Uganda’s stable macroeconomic environment and its legal and institutional framework, which has facilitated the growth of the oil industry.
During a visit coinciding with China’s Belt and Road Initiative forum, Ernest Rubondo and Liu Yongjie, the Chairman of CNOOC International, discussed the progress of the Kingfisher project and the commitment to delivering a successful project in Uganda. They explored strategies for the commercialization of Uganda’s oil and gas resources and the maximization of in-country value.
Rubondo and Liu agreed that timely project delivery and the development of national and community content are essential for the success of the Kingfisher project.
The delegation also visited Shougang Beijing Group’s Qian’an steel mill, a key supplier of steel plates used in pipe manufacturing. The quality and timely delivery of steel sheets are critical to the successful execution of the pipeline project, ensuring the delivery of Kingfisher and Tilenga crude to Tanga for export.
This visit symbolizes the collaborative efforts between Uganda and China in the oil and gas sector, with a focus on the successful execution of key projects such as Kingfisher, Tilenga, and the East African Crude Oil Pipeline.
The PAU delegation met with various companies contracted by TotalEnergies and CNOOC Uganda for works and services on oil and gas projects in Uganda. These include COOEC (responsible for detailed engineering design, procurement, and construction of the Kingfisher project Central Processing facility), COSL (drilling services), CENERTECH (well completions tools, core cutting and fishing, drilling software, and coating of the Kingfisher feeder pipeline), and CPP (construction of the EACOP pipeline and above-ground installations).
The East African Crude Oil Pipeline (EACOP) will have the capacity to pump up to 230,000 barrels of crude oil daily through a specially designed “smart” pipe, covering a distance of 1,443 kilometers from western Uganda to the Indian Ocean coastline in Tanzania. The pipeline will be equipped with heat tracing, insulation, sensors, and cut-off valves to minimize the risk of leakages, ensuring the smooth flow of Ugandan crude oil.