![]() TotalEnergies insists EACOP remains on track to complete financing by the end of this year. How, they asked, would clients “trust us to provide climate risk management if they know we also support projects which worsen these very risks?” Insurance heavyweights Munich Re, Allianz, Axa and Beazley will not provide any cover.Ī pinch of good news came in June, when the Financial Times and the Bureau of Investigative Journalism reported that Marsh McLennan, the New York insurance company, will take a role.Įven that news prompted a backlash at Marsh, where more than 100 staff had signed a letter citing “disastrous consequences” for its reputation and the climate. JPMorgan Chase, Citigroup, Wells Fargo, Morgan Stanley, Deutsche Bank and others have ruled out any financing role. Yet despite these ambitions, financing has stalled in recent months amid an outcry from environmentalists. (Photo: Alexander / Adobe Stock) Financing stalls amid environmental outcry Lake Albert in the Rift Valley, the source of Uganda’s oil. Proscovia Nabbanja, the chief executive of the Uganda National Oil Company, insists that every dollar invested will return 10. ![]() Proponents point out that the project will limit its environmental burden by seeking to keep greenhouse gas emissions below 20kg of CO2 per barrel, extracting liquefied petroleum gas to replace dirty cooking fuels in local villages and markets, and even producing solar energy. Villages and grazing lands are becoming industrial areas, with Kampala developing 16 targeted employment areas including hospitality, security and IT. One by one, dirt roads snaking down the valley are being tarmacked.Ī TotalEnergies processing facility in Uganda will clean the oil of impurities and separate it from gas, before pumping it to a refinery. ![]() ![]() In Uganda’s Rift Valley, excavators are smoothing the terrain for a vast oil processing facility. “By investing in oil and gas deposits in friendly nations such as Uganda, Europe could decrease its reliance on hostile nations,” Museveni, in power since 1986, wrote in a recent opinion piece in the UK’s Daily Telegraph, outlining his pitch to potential customers in the West. The East African country has an estimated 1.4bn barrels of oil reserves. The government of Yoweri Museveni hopes the project will turn Uganda into an oil producer for the first time. In February, TotalEnergies and China National Offshore Oil Corporation (CNOOC) agreed to plough $10bn into it. Set to open in 2025, the world’s longest heated pipeline will shift 230,000 barrels of oil per day and generate more than 34m tonnes of CO2 each year. So successful has the backlash been against EACOP, a $5bn conduit that will stretch from the Lake Albert region of Uganda to the Tanzanian port of Tanga, that around a dozen major lenders and numerous insurers have shunned it – despite surging global demand for alternatives to Russian oil. The outburst offered a fitting introduction to a seldom-discussed energy project, which Uganda and Tanzania say will revolutionise East African oil production, but which has become a target of environmental campaigners. Would the French president, asked a climate activist, denounce the East African Crude Oil Pipeline ( EACOP) and call time on the project in which TotalEnergies, a French company, holds a 62% stake? In Brussels in May, Emmanuel Macron faced an unexpected heckle at an EU summit focused on sanctioning Russia.
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