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| Vitol Managing Director for Bahrain and Head of Middle East, Tom Baker (left), Tanzania Petroleum Development Corporation (TPDC) Executive Director, Mussa Makame (centre) and Uganda National Oil Company (UNOC) Chief Executive Officer, Ms Proscovia Nabbanja display signed Memorandum of Understanding (MoU) documents at State House in Dar es Salaam recently. |
DAR ES SALAAM, TANZANIA; August 12, 2026 – Tanzania and Uganda have signed a Memorandum of Understanding (MoU) to jointly develop the proposed Tanga Regional Energy Hub, marking a major milestone in the two countries’ efforts to deepen energy cooperation, accelerate industrialisation and expand regional trade.
The MoU was signed by Tanzania Petroleum Development Corporation (TPDC) Executive Director Mussa Makame, Uganda National Oil Company (UNOC) Chief Executive Officer Proscovia Nabbanja, and Vitol Managing Director for Bahrain Tom Baker.
The signing ceremony was witnessed by President Samia Suluhu Hassan and her Ugandan counterpart, President Yoweri Museveni, during President Museveni’s two-day working visit to Tanzania recently.
INTEGRATED ENERGY INFRASTRUCTURE
The proposed Tanga Regional Energy Hub will comprise several major components, including a crude oil refinery, terminal tank farm for storage and loading of refined petroleum products, crude oil receiving jetty, and a bidirectional multiproduct pipeline linking Tanga and Uganda.
Once developed, the project will enable crude oil from Uganda to be refined in Tanzania, with petroleum products subsequently supplied to markets in Tanzania, Uganda and other neighbouring countries.
The initiative is expected to allow the two countries to participate more extensively across the petroleum value chain, moving beyond the export and transportation of crude oil to refining, storage, logistics, trading and distribution.
BIDIRECTIONAL PIPELINE TO BOOST REGIONAL ENERGY SECURITY
One of the project's key features is the proposed bidirectional multiproduct pipeline, which differs from conventional petroleum pipelines that transport products in only one direction.
The pipeline will allow refined petroleum products to move between Tanzania and Uganda depending on market demand.
Speaking at the signing ceremony at State House in Dar es Salaam, Minister for Energy Deogratius Ndejembi said the agreement represents a new chapter in East Africa’s economic integration.
He said the project is designed to create value through refining, storage, logistics, trading, industrialisation, employment and regional commerce.
According to the Minister, petroleum products refined at Uganda’s Hoima refinery could be transported to Tanzania and neighbouring markets or exported through the Port of Tanga. Conversely, products refined or stored in Tanga could be transported to Uganda, Rwanda, eastern Democratic Republic of Congo and South Sudan when required.
“EACOP transports molecules; the Tanga Regional Energy Hub transforms those molecules into prosperity,” Mr Ndejembi said.
PROJECT EXPECTED TO ATTRACT OVER US$20 BILLION
The Tanga Regional Energy Hub is expected to attract more than US$20 billion (about TZS 52 trillion) in investments, potentially making it one of the largest integrated energy infrastructure projects in Sub-Saharan Africa.
The investment is expected to generate significant opportunities in industrial development, employment, skills development, exports, technology transfer and regional commerce.
The project also builds on the East African Crude Oil Pipeline (EACOP), which is nearing completion and will transport Uganda’s crude oil through Tanzania to the export terminal at Chongoleani in Tanga.
With the Energy Hub, Tanzania and Uganda would have an opportunity to capture greater value from the petroleum value chain rather than focusing primarily on crude oil transportation.
UGANDA HIGHLIGHTS COMPLEMENTARY ENERGY PROJECTS
Uganda’s Minister for Energy and Mineral Development, Dr Monica Masanza, said the MoU demonstrates the determination of the two countries to turn regional integration into practical investments.
She described the proposed Tanga Energy Hub and Uganda’s planned Hoima refinery as complementary investments that could strengthen regional energy security.
Dr Masanza also highlighted other strategic energy projects being advanced by Tanzania and Uganda, including the proposed natural gas pipeline between the two countries, whose feasibility study is expected to be completed by October this year, the Masaka-Mwanza 400-kilovolt electricity interconnector, and the petroleum storage terminal.
She called for the removal of remaining barriers to cross-border trade, saying efficient movement of goods and services would reduce the cost of doing business and create greater commercial opportunities for citizens of both countries.
A NEW CHAPTER FOR REGIONAL INDUSTRIALISATION
The proposed Tanga Regional Energy Hub represents more than an energy infrastructure project. Its development could create a wider industrial ecosystem around petroleum refining, storage, transportation, logistics, trading and manufacturing.
For Tanzania, the project would further strengthen the strategic importance of Tanga as an energy and logistics gateway, while Uganda would gain additional options for accessing regional petroleum markets through Tanzania.
The initiative also reinforces the growing economic relationship between the two neighbouring countries, particularly in energy, trade and investment.
As Tanzania and Uganda continue to advance EACOP and other cross-border infrastructure projects, the proposed Tanga Regional Energy Hub could become an important pillar of East Africa’s emerging integrated energy and industrial landscape.
Source: Daily News
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