Uganda and Tanzania have signed a landmark agreement to jointly develop the Tanga Regional Energy Hub, marking a major step in expanding regional energy infrastructure and trade…reports Africa Daily News Desk
Uganda and Tanzania have taken a major step towards deepening regional energy integration after Presidents Yoweri Kaguta Museveni and Samia Suluhu Hassan witnessed the signing of a landmark agreement to jointly develop the Tanga Regional Energy Hub, a project expected to transform East Africa’s petroleum sector and strengthen cross-border trade.
The Memorandum of Understanding (MoU), signed between the Uganda National Oil Company (UNOC), the Tanzania Petroleum Development Corporation (TPDC) and Vitol Bahrain E.C., lays the foundation for developing Tanga into a regional centre for petroleum storage, refining, logistics, trading and distribution.
The agreement was signed during President Museveni’s two-day working visit to Tanzania, where he held bilateral talks with President Samia at the State House in Dar es Salaam. The two leaders discussed expanding cooperation across energy, infrastructure and trade before overseeing the signing ceremony.
The Tanga Regional Energy Hub is designed to build on the East African Crude Oil Pipeline (EACOP), which links Uganda’s oilfields to Tanzania’s port of Tanga. The new project is expected to complement Uganda’s planned Hoima refinery while improving regional energy security and opening new export opportunities across East and Central Africa.
Uganda’s Minister of Energy and Mineral Development, Dr Monica Musenero, described the agreement as a significant milestone in regional cooperation and a practical demonstration of the two countries’ shared vision for African economic integration.
“For a long time, Your Excellencies have advocated for a united Africa driven by common interests and shared trade. While we often speak about these aspirations, action speaks louder than words, and today we are privileged to witness a giant step towards joint development with our sister nation,” she said.
Musenero said the partnership with Vitol Bahrain would combine public and private sector expertise to accelerate regional economic transformation.
She stressed that the initiative extends beyond energy infrastructure and is aimed at driving industrial development, job creation and value addition.
“These are not merely infrastructure projects. They are strategic investments that will create jobs for our young people, deepen regional trade and strengthen the logistics systems that support our economies,” she said.
Musenero said Uganda remained committed to maximising value from its petroleum resources by expanding downstream industries rather than exporting crude oil alone.
“We must ensure that we are not simply trading these resources as commodities. We need to extract greater value by developing secondary and tertiary industries, building the knowledge economy and creating high-skilled jobs in engineering, operations, maintenance, laboratory analysis and management,” she added.
She revealed that feasibility and front-end engineering design studies for a refined petroleum products pipeline and storage terminal are progressing and are expected to be completed later this year.
Feasibility studies for a proposed natural gas pipeline linking Uganda and Tanzania are also at an advanced stage and are expected to conclude by October 2026.
Beyond petroleum, Musenero highlighted progress on the planned Uganda-Tanzania 400kV electricity interconnector. Uganda secured US$250 million in World Bank financing in June after completing negotiations in March, paving the way for construction of its section of the transmission line.
The interconnector is expected to strengthen electricity trade between the two countries, reinforce the Eastern Africa Power Pool and create opportunities for energy exports to Southern Africa.
Musenero also reiterated that Uganda’s planned 60,000-barrel-per-day Hoima refinery complements, rather than competes with, the Tanga Regional Energy Hub.
“The hub is complementary. Together, these projects will strengthen regional energy security while enabling East Africa to retain more value from its petroleum resources,” she said.
Tanzania’s Minister of Energy, Deo Ndejembi, described the agreement as another milestone in bilateral energy cooperation, saying it marks the next phase of integration after the East African Crude Oil Pipeline.
“The story we celebrate today did not begin in 2026. It began several years ago when Tanzania and Uganda made the courageous decision to deepen cooperation in the petroleum sector,” he said.
He added that while EACOP provides the transport link, the new hub would generate value through refining, storage, logistics, trading and industrialisation.
“As EACOP approaches completion, Tanzania and Uganda are not asking what comes next. Instead, we are answering that question together,” he said.
Describing the significance of the project, Ndejembi remarked: “EACOP transports molecules. The Tanga Regional Energy Hub transforms those molecules into prosperity.”
He said the proposed hub could attract investments exceeding US$20 billion, making it one of the largest integrated energy infrastructure developments in Sub-Saharan Africa.
Ndejembi also dismissed suggestions that Uganda’s Hoima refinery could compete with the Tanga hub, saying both projects would reinforce regional energy security through a planned bidirectional multi-product pipeline capable of transporting refined petroleum products according to market demand.
The agreement marks a significant step in Uganda and Tanzania’s broader ambition to build an integrated regional energy market capable of attracting investment, creating employment and positioning East Africa as a major player in the global energy sector.
Following the signing ceremony, President Samia hosted President Museveni at a state luncheon in honour of his visit.
