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For All The Entrepreneurs Confused  About How Uganda- Tanzania Crude Oil Pipeline Actually Work


The East African Crude Oil Pipeline (EACOP) or Uganda-Tanzania crude oil pipeline project  creates immense opportunities for companies, individuals and Communities

But I have found the lack of  professional knowledge about how the oil pipeline business work might be the number one reason for people to miss out opportunities in the project

If you want to render service  or you want to participate  the proposed Uganda-Tanzania pipeline project, the first thing first you should be aware of the oil and gas value chain.

In this article you will learn the operating components of Uganda-Tanzania crude oil pipeline and who are the participants in the project.

Let’s get started:

The oil and gas is huge, the oil and gas industry value chain divided into three areas, include

1.Upstream.
2..Midstream
3.Downstream

Since we are talking about the pipeline, we will only touch the midstream segment of the industry, Upstream and downstream areas of the oil and gas will be the talk of another day

Read: How To Participate In The Propsed  Uganda-Tanzania Crude Oil Pipeline Project

Midstream is the portion of oil and gas business that involves transportation and storage of crude oil and natural gas from where they found them to where they will be refined and processed into products that can be sold.

Activities in this sector are aimed at moving natural gas or crude oil from the site where it was drawn to where it will be processed into various petroleum products. The mode of transportation involves:
1.pipelines,
2. trucks,
3. Marine vessels tankers, etc
4. Rail

Pipeline is regarded as efficient and safe mode to transport crude oil or natural gas.

So in this regard Uganda-Tanzania crude oil  pipeline is a midstream segment of the oil and gas value chain.
The crude oil produced from Uganda oil fields will be transported to Tanzania through pipeline.

Now, we have understood, that when we talk about the East African Crude Oil pipeline we talk about the midstream oil and gas value chain. Now let see its operating components.

Operating Components of East African Crude Oil Pipeline (EACOP) Project

1. Processing
When the Total E&P and its upstream partners produce oil from the Uganda Oil field, The small proportion of the crude oil will be refined in Uganda for the local consumption such as Electricity in Uganda.
And the most of the rest will be transported to the international market

2. Transportation
So that is where East Crude Oil pipeline come in to pump Crude Oil from production areas in Uganda to the consumers in the world market

3. Storage

Once the oil reaches to Tanga in Tanzania port will be stored in the storage facilities before shipped to the international market. Storage facilities for EACOP project include:
Marine storage terminals and jetty
Holding Storage Tanks

  Participants of the East African Crude Oil Pipeline Project
We have seen the operating components of the proposed crude oil project. Now here are the beneficiary of the Uganda-Tanzania crude Oil pipeline project

The players in the proposed pipeline business include:

pipeline construction companies, pipeline coating companies, civil and mechanical contractors, logistics and transportation companies, fuel companies, operators, bank and insurance companies, health centers and accommodation. IT and telecommunication companies

I hope this help if you find this information valuable, share with friends.

Hussein Boffu

Hussein. Boffu@tanzaniapetroleum.com

+255742856060

 

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Updated: November 21, 2017 — 1:45 PM
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