EACOP vs Lamu pipeline



“I don’t have powers to stop EACOP project in Uganda,” French President tells climate activists​


May 16, 2022


The newly re-elected president of France, Emmanuel Macron has said he cannot stop the East African Crude Oil Pipeline (EACOP) project in Uganda because there’s no French public financing in it.

Macron was responding to questions by climate activist, Dominika Lasota who quizzed the president on his stance on the ongoing EACOP project funded by Total, a french company.

Lasota asked Macron if he would be the president that will end error of fossils by particularly stopping the EACOP that goes through Uganda to Tanzania.

In his response, the French president said he cannot stop the investment by Total because there’s no public financing in it. He added that he cannot take that decision without his government.

“My point is you cannot do it without government itself. I totally understand your point on Total. Total does not belong of French government. So, I stopped all the public financing. For diversity, I stopped the project on Arctic- Jamal.” Macron said
He added, “If there’s remaining public finance, I will stop them. I make this commitment.”

Macron observed that with all due respect for sovereignty, he would rather discuss the matter with Uganda.

The EACOP project consists of the construction of a buried 1,443 km oil pipeline between the town of Kabaale in Uganda and the port of Tanga in Tanzania, and a storage terminal and loading jetty in Tanga.

The oil pipeline includes six pumping stations, powered by solar plants in Tanzania, and a heat tracing system. Upon completion, it will become the world’s longest heated crude oil export pipelines.

Since the launch of the project, the EACOP has been met with resistance from NGOs and climate activists who continue to argue that the project possesses risk towards the climate. The arguments come at a backdrop of increasing calls for a transition to renewal energy.

Last month, in his writing for UK multmedia brand, the Telegraph, president Museveni noted that considering the fact that the demand for oil and gas in Africa is increasing in tandem with the ever growing population, the ‘expensive’ and ‘less reliable’ green energy being pushed by the west would not work out for the continent.

Museveni lauded the west’s green ambitions but said their strategy of realising this by imposing a moratorium on fossil investment abroad was misguided.

He advised the west and the US to take right decisions that would fairly benefit all people across the globe particularly Africa where there are still gaps in energy supply.

“In Africa, where the population is expected to double by 2050, it is becoming increasingly clear that our energy needs cannot be met with a sudden shift to more expensive and less reliable solar and wind energy alone. Not can renewables yet deliver the baseload required to boost manufacturing or industrialise agriculture- crucial for Africa in the wake of the pandemic.” Museveni noted.



 
Unending controversy around EACOP.....i wonder what would have happened if this pipeline had passed through Kenya
 

NEMC defends crude oil pipeline project against activist smears





Summary

Western activists argue that construction of the pipeline will displace thousands of families, and threaten resources in the Lake Victoria and Nile basins.


By George Helahela
More by this Author

Dar es Salaam. The National Environmental Management Council (NEMC) has castigated a “smear campaign” against the $5 billion East African Crude Oil Pipeline (Eacop) project.

NEMC’s response follows what activists have termed “serious environmental concerns” with regard to the proposed pipeline to be built from Hoima, Uganda, to the Tanzanian port city of Tanga.

They argue that construction of the pipeline will displace thousands of families, and threaten resources in the Lake Victoria and Nile basins.

They further say the pipeline will generate some 34 million tonnes of carbon dioxide emissions annually, thus fuelling climate change.

But NEMC hit back yesterday, saying people who were opposed to the project were either misinformed, or were simply against Africa’s development “for reasons best known to them and their backers”.

“These activists had an opportunity to air their views two years ago before NEMC and the minister responsible for the Environment issued a certificate of approval for the project. Doing what they are doing now shows that they harbour ill motives against the project,” NEMC director general Samuel Gwamaka said.

He added that NEMC was satisfied that all the necessary environmental precautions had been taken.

“The evaluation of environmental impact was conducted by both local and international environmental consulting companies before the certificate was awarded,” Dr Gwamaka said.

RSK Group, COWI Tanzania Limited and JSB were some of the local and international consultancy companies that participated in the assessment.

RSK Group, which has its headquarters in the UK, markets itself on its website as a company that “prides itself for having a family of over 130 environmental, engineering and technical service experts who work together to provide practical solutions to some of the greatest challenges societies have ever faced.

“These challenges, and the responses to them, are perhaps best captured by the United Nations Sustainable Development Goals: a shared blueprint for peace and prosperity for people and the planet, now and into the future.”

Dr Gwamaka noted that the project had been duly registered, and that, going by the assessment, there was no way its implementation could adversely affect the environment.

“During the assessment process, NEMC reviewed and verified the necessary documents, and put in place plans to deal with adverse environmental and social impacts. We also involved all key stakeholders in all the eight regions the pipeline will pass through,” he said.

The EACOP project was registered with NEMC and given number 6725 in March 2017 as a project to be implemented by Total East Africa Midstream.

Dr Gwamaka said claims that people would be rendered homeless were baseless because all the affected residents would be compensated accordingly.

“In fact, the affected households will be compensated with higher quality housing units than some of those they had before the exercise,” he said.

He added that NEMC would continue to monitor, and ensure that all aspects of the assessment document were adhered to, and some of the affected people would actually see their lives improve markedly.

Dr Gwamaka said it was NEMC’s view that most of the activists “making noise” about the project were based outside Tanzania, and had little or no knowledge of what the project was all about and its anticipated impact.

 

Eacop’s $5b financing headache as environment activists pile pressure​

SUNDAY MAY 29 2022​


Containers of crude oil at the test drilling site of the China National Offshore Oil Corporation Uganda, which operates the “Kingfisher” project in western Uganda. PHOTO | FILE

Summary

  • Upon completion in 2025, Eacop will be the world’s longest heated pipeline, transporting 216,000 barrels of oil per day from Hoima in Uganda’s Lake Albert region to the Tanzania Indian ocean port of Tanga, spanning a distance of 1,443km.
  • Upon completion in 2025, Eacop will be the world’s longest heated pipeline, transporting 216,000 barrels of oil per day from Hoima in Uganda’s Lake Albert region to the Tanzania Indian ocean port of Tanga, spanning a distance of 1,443km.


By JULIUS BARIGABA
More by this Author

In a week when seven more financiers publicly distanced themselves from backing the East African Crude Oil Pipeline (Eacop), executives from the Ugandan government and oil companies remained confident that the financing package for the project — which is key to the commercialisation of Uganda’s oil — is on the home stretch and will be tied up in two months.

The confidence is buoyed by recent revelations by the Financial Times and the Bureau of Investigative Journalism that New York-based insurance broker Marsh McLennan will come on board as the insurance arranger. This brought optimism after global insurers Swiss Re, AXA and Zurich last year declined to cover the $5 billion pipeline that has faced a fierce campaign from climate and environmental activists who describe it as “toxic”.

In March, reports showed that Eacop’s promoters TotalEnergies were banking on European and Asian export credit agencies to provide a financial guarantee for the project to bring on board commercial banks to provide loans.

Officials in Kampala are guarded on which financiers are involved but indicate that the wheels are starting to turn.

Negative campaigns​

Eacop deputy managing director John Bosco Habumugisha said that potential lenders had travelled to Uganda and Tanzania to evaluate the project, and that the authorities will announce the financiers within two months.

“What I can say is that we have very many entities that are willing to fund the project,” he said on May 19 while giving an update on Eacop’s execution in Kampala.

Insiders say arranging Eacop’s financing has been a “headache,” a “slow and complex process” due to the environment concerns and negative campaign by climate activists.

“It has been difficult,” a source said.

“Every time something is said or written about this project, a financier drops out.”

The project financial advisors are Standard Bank of South Africa through its Uganda subsidiary Stanbic, Chinese giant Industrial and Commercial Bank of China (which owns a 40 percent stake in Standard Bank) and Japan’s Sumitomo Mitsui Banking Corporation.

A fortnight ago, climate activist Dominika Lasota confronted France President Emmanuel Macron in Brussels, asking him to denounce Eacop, cut off support and stop the project in which the French major TotalEnergies holds a 62 percent stake.

Such campaigns have seen major lenders desert the company as the push for clean energy sources gains currency.

“Total and allies were in a hurry to announce their final investment decision in early February this year. Since then the list of banks and insurers staying away from Eacop has been growing,” Omar Elmawi, the coordinator of the #StopEacop Coalition, said last week.

Last week alone, five banks — Deutsche Bank, Citi, JPMorgan Chase, Wells Fargo and Morgan Stanley — confirmed they would not finance the Eacop. Insurer Beazley Group and the Italian export credit agency SACE also opted out.

Another 13 banks — including two TotalEnergies’ traditional lenders — abandoned the French giant-headlined project between 2020 and 2021, but experts argue that there is a way back in for some of these lenders if Total is on course for a low-carbon transition.

TotalEnergies said in its 2021 presentation to shareholders that for the Lake Albert project, it has set a carbon intensity target of 13 kilogrammes of carbon dioxide equivalent, per barrel of crude oil produced (13kgCO2/boe).

Globally, carbon intensity for crude oil ranges from 10.1-72.1kgCO2/boe, and the French giant’s Chief Executive Patrick Pouyanne says the firm is transitioning from fossil fuels to renewable energy and remains on course achieve net-zero carbon emissions by 2050.

World’s longest pipeline​

Upon completion in 2025, Eacop will be the world’s longest heated pipeline, transporting 216,000 barrels of oil per day from Hoima in Uganda’s Lake Albert region to the Tanzania Indian ocean port of Tanga, spanning a distance of 1,443km.

The pipeline, whose construction will start in the second half of 2022, will generate up to 34 million tonnes of carbon emissions each year, but Mr Habumugisha says activists are failing to recognise measures the project promoters are deploying to mitigate environmental impact.

“We are introducing intrusion detection technologies, we have added leak detection systems, we have added general physical surveillance and in addition,” he said, adding that the activists’ campaigns will not stop the project.

TotalEnergies and China National Offshore Oil Corporation took the Final Investment Decision in February to invest $10 billion toward production and transportation infrastructure to drill, produce and commercialise Uganda’s oil.

 
TBT: The day Museveni hogwashed Nyayo on Uganda's oil!
 

Standard Bank EACOP pipeline finance plan still on table despite protests​

The Independent June 4, 2022
AFRICA, Business, NEWS Leave a comment


Climate activists protest in South Africa at the Standbard Bank AGM. PHOTO @Earthlife_JHB

Cape Town, South Africa | MELISSA BRITZ – ALL AFRICA.COM | Climate activists have demanded answers from Standard Bank for its involvement and continued support for oil and gas projects on the African continent, even as the worst effects of the climate crisis are being seen and felt.

Activist shareholders and NGOs attended the company’s annual general meeting to question executives about the East African Crude Oil Pipeline (EACOP), it’s involvement in gas extraction in Mozambique and support for future oil and gas projects in the region. This comes amid increasing pressure on the financiers of fossil fuel projects such as banks, insurers and other financial players who are key to future development projects.

The heated crude oil pipeline is planned to run from Hoima in Uganda to the port of Tanga in Tanzania, covering an area of 1,443km. It will run near Africa’s largest freshwater reserve – Lake Victoria – posing a huge threat to local livelihoods and biodiversity in the region. According to 350.org, more than 100,000 people are being forced off their land and are facing expropriation.

While oil producers often point to jobs and income for host countries, this seldom translates to benefits for citizens.

The Bureau of Investigative Journalism has reported that the deal between the Ugandan government, TotalEnergies and the China National Offshore Oil Corporation would see most of the benefits go to the oil majors. The deal “much of which remains secret” … “would override some national laws and … “grants the companies a 10-year exemption from income tax, and circumvents Ugandan laws that would ensure jobs and contracts go to local people and companies”.

But the cost of fossil fuel extraction extends far beyond mining and transportation to the heavy and ongoing cost often borne by the poorest communities of polluted water, air and land that can no longer be used for sustainable livelihoods.

Nigeria has long faced the challenges of being resource-rich, with its abundant oil and gas reserves, but has also struggled with the suffering caused by pollution from oil leaks and spills, as well as gas flaring. Communities have for decades struggled for justice from oil companies for their polluted lands and loss of income and culture.
Nigerian environmental rights lawyer Chima Williams, who for 20 years held transnational companies accountable for the oil pollution in these communities, was recently awarded the Goldman Environmental Prize 2022 for his work.

Gas developments in Mozambique also came up for discussion during Standard Bank’s AGM. Ilham Rawoot of Justiça Ambiental (JA!)/Friends of the Earth Mozambique says “although many other financiers are doing a full reassessment of their involvement in these LNG projects, Standard Bank continues to fund them. Despite the claims that gas production would improve Mozambican government revenues, support wider economic development, and address energy needs, Mozambicans are poorer than they were a decade ago and the country will be left with stranded assets and no resources to support an alternative development pathway”.

Standard Bank says it has not yet decided whether to fund the pipeline. The company also says it supports the Paris Climate Agreement and a just transition, and argues that developed countries should make the biggest cuts to emissions as they are the “largest historic emitters and bear the most responsibility.” The bank says fossil fuels are needed to “support access to reliable energy that supports economic growth and poverty alleviation”.

Activists say “this position is not in line with climate science, nor with the reality of fossil fuel extraction in Africa. The financial benefits of this extraction are overwhelmingly exported to developed nations, while Africans bear the brunt of the devastating social and environmental impacts”.
More than 20 banks, including most of TotalEnergies’ largest bankers, have said that they will not join the project loan.

But how do we transition from fossil fuels?
African countries have profound challenges with access to energy for its citizens. According to a report by the Economic Commission for Africa (UNECA), about 600 million people do not have access to electricity and nearly 900 million people have no access to clean cooking fuel, while power access rates in 24 countries are below 50%.

While renewable energy is not without its own challenges in terms of accessibility, and the upfront costs needed for technology it is by far the cheapest and safest option for long-term energy sustainability without completely compromising the conditions on earth needed for human survival.

A young Sierra Leonean entrepreneur has created an energy company that is providing free electricity to rural communities who previously had no access to safe, clean power. Jeremiah Thoronka and Optim Energy have harnessed piezoelectricity to create a sustainable source of electricity. This form of electricity makes use of kinetic or movement energy when pressure is applied to certain materials. So for example, when mechanical pressure is applied to a crystal, which is a piezoelectric material, it generates a current.

Thoronka’s design uses heat, movement and pressure. It absorbs the vibrations from pedestrians and traffic to generate an electric current and create clean and affordable power. This invention won Thoronka the Varkey Foundation’s Chegg Global Student Prize 2021 in November.
Biodiversity also presents an immense opportunity for indigenous and rural communities to be the innovators and creators of new and sustainable products made from plant and animal sources.

A report by the Montpellier Panel says that “bio-based innovations can offer technological solutions to many of the economic, social, and environmental challenges facing Africa. The use of renewable biological resources, primarily from the agricultural sector, provides a platform from which to accelerate a global transition toward greater sustainability. A vibrant bioeconomy can increase agricultural productivity and support the expansion of agro-industries, both of which are vital for sustainable economic growth, employment generation, and enhancing economic competitiveness”.

“… Africa’s agricultural processing waste is being used in novel ways. These by-products – typically the leftover pith, husks, stems, leaves, and so on from commodity crops like sugarcane, coffee, and cotton, can be turned productive, including as bio-energy sources to replace fossil fuel and even for packaging. This reduces overall carbon emissions as food waste is a major greenhouse gas emitter,” Dr. Ousmane Badiane and Prof. Joachim von Braun write in an article related to the report.

While these type of energy intervention are usually hyperlocal and on a small scale it also provides an opportunity for community-led and owned energy solutions that bring skills and jobs to areas often overlooked for development, as seen in the case of Optim Energy.

****
SOURCE: ALL AFRICA.COM

 
Cookies are required to use this site. You must accept them to continue using the site. Learn more…