China Supplier Meets Deadline on Uganda 'Smart' Oil Pipeline

(P&GJ) - Panyu Chu Kong Steel Pipe Co., the contractor supplying line pipes to the East African Crude Oil Pipeline (EACOP), said the first batch of 161 miles (100 km) of pipes are in route to the port of Tanga, Tanzania.

EACOP will have the capacity to pump up to 230,000 bpd down a specially designed 897-milw (1,443-km) 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 will be buried and lined with hi-tech insulation as well sensors and cut-off valves to minimize the risk of leaks.

A flag off ceremony to mark the milestone is planned for Oct. 30.

"We are committed to ensuring timely delivery" said Xie Leshan the PCK president at a meeting with a delegation of the Petroleum Authority of Uganda (PAU) led by Executive Director Ernest Rubondo.

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).

Liu Yongjie, the chairman CNOOC International, 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.

Also discussed were strategies for the commercialization of Uganda's oil and gas resources and ways to maximize the in-country value generated by these projects, extending to local communities and industries, thereby fostering economic growth and development.

The two agreed that development of national and local content is the best way to ensure a win-win situation from the Kingfisher project.

The 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," Rubondo said.

PAU in a statement said that the China visit symbolized 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.


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