Panyu Chu Kong Steel Pipe Co., Ltd, the company contracted to supply line pipes to the East African Crude Oil Pipeline (EACOP) has said the first batch of 100 kilometres of pipes are in the process of being delivered to the port of Tanga, in Tanzania.
A flag off ceremony to mark the milestone is planned for 30th October 2023.
“We are committed to ensuring timely delivery” Xie Leshan the President of PCK, declared at a meeting with a delegation of the Petroleum Authority of Uganda (PAU) led by Ernest Rubondo, the regulator’s Executive Director. The team visited PCK’s Pipe Mill in Lianyungang as part of a verification and validation visit to China ahead of accelerated project timelines for the CNOOC (China National Offshore Oil Corporation) group of companies.
CNOOC is one of the key players in the Uganda oil sector and operator of the Kingfisher Development Area (KDA).
During the visit by PAU, on the sidelines of China’s Belt and Road Initiative forum, Mr. Rubondo met with Liu Yongjie, the Chairman CNOOC International, at the CNOOC International Headquarters in Beijing.
Liu and Rubondo discussed the progress of the Kingfisher project and received assurances of CNOOC’s commitment to fulfilling its responsibilities on this project and expand cooperation to deliver a ‘shining star’ project in Uganda.
The two men also discussed strategies for the commercialisation of Uganda’s oil and gas resources and ways to maximise the in-country value generated by these projects, extending to local communities and industries, thereby fostering economic growth and development.
Mr. Ernest and Mr. Liu agreed that development of national and local content is the best way to ensure a win-win situation from the Kingfisher project.
The Ugandan delegation also toured the Shougang Beijing Group’s Qian’an steel mill, which supplies the steel plates used in the manufacturing of pipes for EACOP. “This is a crucial component of the project, as the quality and timely delivery of materials are vital for the successful execution of the pipeline project which ensures the delivery of Kingfisher and Tilenga crude to Tanga for export” Mr Rubondo said.
PAU in a statement said that the China visit symbolised the collaborative efforts between Uganda and China in the oil and gas sector, with a particular emphasis on the successful execution of key projects like the Kingfisher, Tilenga and the East African Crude Oil Pipeline.
EACOP will have the capacity to pump up to 230,000 barrels of crude oil daily down a specially designed 1,443 kilometre long `smart’ pipe from western Uganda to the Indian Ocean coastline of Tanzania.
Some parts of the pipe will be heated so that the high-grade Ugandan crude, which is waxy like shoe polish at surface temperatures, will flow evenly. The pipe, which will be buried along all of its length at up to 6 metres below the surface, will be lined with hi-tech insulation as well sensors and cut-off valves to minimise the risk of leaks.