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Africa and Middle East still leaders in oil pipelines construction

The countries of Africa and Middle East account for 49% of the length of oil pipelines under construction globally. By May 2023, the total length of oil pipelines under construction all over the world was 9,100 km and their total cost was USD 25.3 bn, while for Africa and Middle East these figures made 4,400 km and USD 14.4 bn respectively, Global Energy Monitor says. At the same time, the length and the cost of the announced, but not launched construction projects in the sphere of oil transportation globally was 10,800 km and USD 59.8 bn.

16.08.2023
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Africa and Middle East still leaders in oil pipelines construction
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The photo is sourced from earthworks.org

The biggest project currently under construction is the Niger–Benin oil pipeline 1,950 km long with the cost of USD 7 bn and with Agadem oilfield as the base. CNPC from China started the construction in 2019, the planned throughput is 90 thousand bbl per day. This pipeline will be feeding the CNPC refinery in Zinder in the South of Niger, and also will transport crude to Port Seme on the shore of the Gulf of Guinea. The commissioning of the pipeline is scheduled for 2024.

The announced, but not yet launched major construction projects include: expansion of Tazama oil pipeline connecting Tanzania and Zambia (length 1,710 km, cost USD 7.8 bn); construction of East African Crude Oil Pipeline (EACOP) with the planned throughput of 246 thousand bbl per day, the length of 1,444 km and the cost of USD 5 bn. The latter will be laid across the territories of Uganda and Tanzania and will transport crude oil from Uganda to the Indian Ocean shore to be further loaded onto the tankers. The last of the top three projects at the pre-investment stage is the Angola–Zambia oil pipeline (1,400 km; USD 6.3 bn), with the planned throughput of 1 mln bbl per day.

The Middle East oil transportation projects are implemented mainly in the territory of Iran, where the total length of pipelines under construction reached 1,978 km by May 2023 (Iran is the global leader with respect to this indicator), and Iraq, where the new pipelines are planned for such well-known oil-bearing regions as Kirkuk and Basra. Outside Africa and Middle East, India is the global leader with respect to the oil transportation projects (currently under construction and the announced ones). In India, the second longest oil pipeline in the world is under construction (PNCPL, length 1,630 km and cost USD 4 bn), and Mundra–Panipat pipeline is planned (1,194 km) to transport crude oil from one of the seaports in Gujarat state to the refinery in Haryana state in the Northern part of the country.

Tags: AfricaAngolaBeninChinaIndiaIraqTanzaniaTransportationUgandaZambia

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